If you're thinking of riding the next meme stock mania, be sure to sell in about 2 weeks

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For subscribers: If you're thinking of riding the next meme stock mania, be sure to sell in about 2 weeks. Check out CNBCPro today.

On average, Reddit stocks' runs lasted nine trading days from the start to their first big drop during the initial frenzy in January, according to a CNBC analysis.The trading mania made a resurgence this week as day traders on Reddit rotated from AMC Entertainment to Clover Health and Wendy's and to Clean Energy Fuels.

When a certain meme stock catches on and explodes in prices, institutional investors could use the volatility to their benefit by using more complex options strategies for outsized profits.The meme-stock phenomenon, in which Reddit traders have been piling into one stock after another, shows no signs of slowing down. But even if the trend is here to stay, the length of each individual stock's run can be fleeting, a CNBC analysis of market data shows.

On average, Reddit stocks' runs lasted nine trading days from the start to their first big drop during the initial frenzy in January, though durations varied and some experienced significant volatility even before finally cratering.

 

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Pro

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Pro Fake news!

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Pro

Pro Be sure to get pumped then dumped by buying Wendy’s should be the title.

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