Shares of Houston American Energy Corporation HUSA closed Monday down 32.27% to $10.60, retreating from last week's remarkable rally. The pullback aligns with a broader downturn in energy stocks, driven by a drop in oil prices after reports surfaced suggesting Iran is seeking to de-escalate hostilities with Israel.

What To Know: The shift marks a sharp reversal from Friday, when HUSA became the top trending stock on StockTwits. The company's shares skyrocketed on news of escalating geopolitical tensions in the Middle East, a common catalyst for the sector.

The rally was fueled by exceptionally high trading volume as a massive influx of traders, particularly from the retail community, piled into the small-cap energy firm amid fears of a potential disruption to the global oil supply.

However, market sentiment shifted as reports indicated Iran has signaled a desire to return to negotiations, easing the geopolitical jitters that rattled investors. This news has sparked a “risk-on” rally across global equities, diminishing the appeal of energy names that had benefited from the conflict premium.

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How To Buy HUSA Stock

By now, you're likely curious about how to participate in the market for Houston American Energy, be it to purchase shares or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of Houston American Energy, which is trading at $10.57 as of writing this article, $100 would buy you 9.46 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading — either way, it allows you to profit off of the share price decline.

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