New York, July 10, 2026, 11:20 EDT
Opendoor Technologies Inc. NASDAQ:OPEN dropped 6.6% to $4.95 as of 11:14 a.m. EDT Friday, after hitting $5.495 earlier. The slide wiped out most of Thursday’s 10.7% jump, with the stock now sitting just 3.3% above where it closed on Wednesday.
The timing is a factor here. Traders moved 70,991 Opendoor call options Thursday, about triple normal volume. Most of that action, nearly 23,800 contracts, hit the July 10 weekly calls at $5 and $5.50 strikes. The put-to-call ratio was at 0.15. Implied volatility jumped to 97.72%. Calls give buyers the right—but not obligation—to buy shares at a set price.
That kind of concentration can swing prices around expiration on Friday. Market makers often have to adjust their positions—buying or selling stock—as shares move through popular strike prices and options values shift. The public data doesn’t show who holds the contracts though, so there’s no proof dealer hedging pushed up the stock on Thursday or pulled it back on Friday.
Opendoor traded 112.2 million shares Thursday, more than double its average and making up 11.6% of the company’s shares. That volume was about 73% of the 153.7 million shares short as of June 15. Short interest is stock loaned out and sold for a bearish bet. Investors buying to cover can fuel rallies, but the trading tally doesn’t reveal actual covering.
The peer tape signals a trade linked just to Opendoor, not a big move across all housing names.
| Security | Thursday close | Friday mid-morning |
|---|---|---|
| Opendoor Technologies Inc. | jumped 10.7% | fell 6.6% |
| Offerpad Solutions Inc. NYSE:OPAD | rose 1.6% Yahoo Finance | down 2.1% MarketWatch |
| Zillow Group Inc. NASDAQ:Z | up 0.5% Yahoo Finance | dropped 2.2% MarketWatch |
| Nasdaq Composite | added 1.3% AP News | slipped 0.4% Nasdaq Global Index Watch |
Opendoor’s investor site didn’t show any new operating news to explain the two-day move. The last press release was from May 27, and the most recent 8-K listed was June 12. The only recent stock view was a July 8 short call from J Capital Research, which said the stock traded at about four times book and argued that selling homes faster might mean weaker prices. That call came from the research side, not a company filing.
Housing numbers sent mixed signals. U.S. existing-home sales dropped 2.4% in June to 4.09 million units annualized, missing the 4.20 million seen in a Reuters poll. The median price hit a new high at $440,600. Lawrence Yun, chief economist at the National Association of Realtors, said the swings each month show “how sensitive home buyers are to affordability conditions.” The average 30-year mortgage rate climbed to 6.49% from 6.43% the week before. Reuters
Forward-looking data looked stronger. Redfin, a brokerage run by Rocket Companies Inc. NYSE:RKT, said pending home sales rose 1.3% from the previous week to hit a six-week high for the four weeks ending July 5. Mortgage rates, though, moved back up to 6.68% as of July 8. “The housing market is kicking off the summer by showing a bit of resilience,” said Chen Zhao, who heads economics research at Redfin. Redfin
Now it comes down to how Opendoor performs in the second quarter. Margins improved and buying picked up in Q1, but the company also took on more inventory.
| Opendoor operating measure | Q1 2026 | Q4 2025 | Sequential change |
|---|---|---|---|
| Revenue | $720 million | $736 million | -2% |
| Gross margin | 10.0% | 7.7% | up 2.3 points |
| Contribution margin | 4.4% | 1.0% | up 3.4 points |
| Homes purchased | 2,474 | 1,706 | up 45% |
| Homes in inventory | 3,420 | 2,867 | up 19% |
| Real-estate inventory | $1.139 billion | $925 million | up 23% |
| Adjusted EBITDA | -$31 million | -$43 million | $12 million better |
Contribution margin tracks what’s left after direct selling and holding costs on homes sold. Adjusted EBITDA is a non-GAAP figure the company uses to track operating performance before interest, taxes, depreciation, amortization, and some other adjustments.
Opendoor CEO Kaz Nejatian said in May the company is getting “better acquisitions, faster turns, stronger margins.” Opendoor expects second-quarter revenue to rise about 25% from the first quarter. The company also projected a contribution margin in the middle of its 5%-to-7% target band and adjusted EBITDA close to break-even, plus or minus a few million. Opendoor Technologies Inc.
But the risk isn’t gone. If mortgage rates hang near 6.5% and completed home sales drop off, Opendoor might have to lower resale prices to move inventory after a 23% jump from last quarter. That margin goal could get squeezed. But if margins stay solid as buying picks up, the heavy short interest could trigger another sharp rally. Friday’s reversal pointed to $5 positioning driving the stock more than housing data at the moment.
Related articles: NASDAQ:OPEN
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