Robinhood is narrowing its list of restricted stocks, but will still impose limits on buying shares of heavily shorted GameStop Corp. and AMC Entertainment Holdings Inc. when trading opens Monday.
On its website, the online brokerage on Sunday adjusted its list of restricted stocks from 50 to eight: GameStop
Genius Brands International Inc.
Naked Brand Group
and Nokia Corp.
Per the limits, Robinhood users can only buy one share of GameStop (and up to five options contracts), and up to 10 of AMC (and 10 options contracts).
“Please note that these are aggregate limits for each security and not per-order limits, and include shares and options contracts that you already hold,” Robinhood said. “These limits may be subject to change throughout the day.”
Robinhood said that for users whose holdings already exceed those numbers, positions will not be sold or closed. “However, you will not be able to open more positions of each of these securities unless you sell enough of your holdings such that you are below the respective limit,” Robinhood said.
GameStock shares rose more than 400% last week and are up more than 1,600% this year following an effort by online traders, and encouraged on Reddit message boards, to upend short sellers. AMC shares gained 280% last week, and are up 525% year to date.