Share:
Discovery, Inc’s (NASDAQ: DISCA) (NASDAQ: DISCB) series B shares spiked nearly 83% in the regular session Wednesday.
What Happened: The cause of the soaring could be a short squeeze involving arbitrage traders or a so-called “arb squeeze” according to Dennis Dick, head of markets structure at Bright Trading, Bloomberg reported.
The thinly traded Class B shares nearly 94% controlled by television tycoon John Malone saw volumes spike by nearly 39,445% in Wednesday’s trading.
The latest move in the shares could be an indicator that arbitrage traders were trading the Class B shares after not being able to borrow against Class A shares, according to Dick, reported Bloomberg.