Chewy Options Volume Soar as Stock Sees Wild Swings After Roaring Kitty's 6.6% Stake
Shares climbed to as high as $30 after meme stock trader Keith Gill, known in social media as "Roaring Kitty," disclosed a 6.6% stake in the pet-supply retailer in a filing with the Securities and Exchange Commission. The 9 million shares he holds are worth $245 million, based on Friday's closing price. The rally quickly faded and by noon time Monday in New York, the stock was already down almost 7% at $25.52.
The initial surge in the stock price spurred activity on call options giving the holder the right to buy the stock at $30 a share by the end of this week. As the shares gave back those gains and turned lower, selling accelerated, adding to the volume. By 12:29 p.m. in New York, more than 18,720 call options have changed hands, surpassing the open interest of 11,910.
The $30 calls were the most heavily traded Chewy contracts across 12 expiration dates that stretches through Jan. 16, 2026, with total volume reaching 25,660 for that strike price so far Monday. The combined volume -- calls and puts -- totaled more than 208,280, landing Chewing in top 9 of the most active stock options, behind $NVIDIA(NVDA.US$, $Tesla(TSLA.US$, $Apple(AAPL.US$, $Advanced Micro Devices(AMD.US$, $Amazon(AMZN.US$, $Marathon Digital(MARA.US$, $GameStop(GME.US$, and $Nike(NKE.US$.
Gill's stake in the company could bring out speculative activity in Chewy shares, analysts at William Blair warned, adding that the stock could be "divorced from fundamentals," Wall Street Journal reported. The stock could get a meme tag, driving volatility. An unpredictable and difficult to track news flow may result in a narrower institutional investor base, WSJ quoted Mizuho's David Bellinger as saying.
While it's unclear when Gill purchased his stake in Chewy, trading activity on both options and the underlying stock has been building since last week. On June 24, the stock's trading volume reached a record 157.2 million, almost triple that of the previous day. With call options, volume climbed last Thursday to 238,620, the highest since at least the start of this year, data compiled by moomoo showed.
After the whipsaw, technical indicators are showing no obvious signal, with four of the 15 signaling the stock could be overbought and may turn bearish, while 10 are neutral. The remaining indicator is bullish.
Chewy saw an inflow of $61.3 million so far Monday after two monthly inflows through June 30.
If you have an outlook on the stock, is your view affected by Gill's stake? If so, how? Share your thoughts below.
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Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
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Moomoo Senior News and Community Manager
Former editor at Bloomberg, then Lazard Asset Management. Posts aren’t investment advice. Views are just mine.
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usazabala : %$ who cares about dog good
XchoHopar : I’m in love with chewy
Pr3car1ous Recession_Proof: USA, he will just pay a 1% fine
5060 Recession_Proof: for what?
TheZooman22 : Yes or No?
103475890 : well
Luzi Ann SantosOP TheZooman22: Hi. Yes, that survey question was confusing so I tweaked it. That’s why the vote number reset to zero.