TSLA
Tesla
-- 421.060 NVDA
NVIDIA
-- 134.700 PLTR
Palantir
-- 80.550 RGTI
Rigetti Computing
-- 9.3700 AMD
Advanced Micro Devices
-- 119.210 
GameStop Call Options Attracted in $4.6 Million Bullish Bets Before Stock Popped
Could whales have foreseen the return of meme-stock guru Keith Gill, also known as Roaring Kitty, that fueled $GameStop (GME.US)$'s meteoric rise this week, or was it just pure luck?
While many financial giants who bet against GameStop are feeling the pain of a short squeeze, a few who placed a combined $4.65 million in bullish bets last week are benefiting from the return of the meme stock frenzy.
GameStop shares climbed 64% to $50.03 at 12:06 p.m. Tuesday in New York, extending its 74% jump a day earlier, as retail investors rushed to buy the stock after Roaring Kitty's post sparked a frenzy. That prompted a flurry of posts on $Reddit (RDDT.US)$'s WallStreetBets forum, with traders sharing screenshots of their returns on the stock and its options.
Retail investors have been piling into the stock of a company that has been losing money since 2019. For the quarter ended April 30, analysts on average, expect it to report a first quarter loss of 12 cents, according to estimates compiled by S&P Capital IQ.
The biggest of the bullish bets posted by whales last week was a block trade for call options that give the holder the right to buy 219,000 GameStop shares at $10 each by the end of this week. The price of those call contracts surge to $43.12 a share as of 11:15 a.m. in New York, from the $6.85 a share the whale paid for the trade that was posted on May 9.
Those calls are now worth $9.4 million, delivering hefty gains for the buyer who paid a $1.5 million premium for that trade, assuming the position was closed before today's extended rally.
Share your thoughts below.
Share your thoughts below.
Disclaimer: 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.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Luzi Ann Santos
Moomoo Senior News and Community Manager
Former editor at Bloomberg, ex-commentary editor at Lazard. Posts aren’t investment advice. Views are just mine.
6137Followers
17Following
17KVisitors
Follow
EZ_money : or cheated their way?
Jinxin Liu : How did they even know beforehand?
White_Shadow : well when the meme frenzy is over and all those retail investors realize $GameStop (GME.US)$ is garbage that has been losing $ since 2019 with a 2% revenue decline YoY
liquidgold : Market manipulation hmmm
Justford : 3 year leaps
Wealth ProgresSIR : Whoa