Justin Sullivan
GameStop (NYSE:GME) shares soared as much as 75% early Monday, finding fresh fuel to move higher after the stock’s most influential investor revealed what looks to be a big bet on the company, valued at about $115.7M.
GameStop (GME) shares were up 26% in late-morning trade, paring gains after jumping as much as 75% to $40.45 during the first hour of trading. The NYSE-listed shares of the video games seller soared 64% at the open, triggering a brief volatility halt.
The spike up in GameStop (GME) share price on Monday may lead short-sellers to log nearly $1B in paper losses, according to data firm Ortex.
June trade kicked off for the meme stock with Keith Gill, aka Roaring Kitty, on Sunday posting on Reddit (RDDT) a screenshot showing he had purchased 5M GameStop (GME) shares at $21.27 each, as well as 120,000 call options worth $65.7M. A strike price of $20 was set to expire June 21.
Shares of GameStop (GME) in May bulked up by 109%. The shares steadily gained ground until a rally exploded open mid-month following Gil’s return to social media after three years. Market players interpreted that as Gil signaling he was making moves in GameStop (GME).
Other meme stocks and highly shorted shares were rising Monday, including AMC Entertainment (AMC) and Faraday Future Intelligent Electric Inc. (FFIE).
Aside from GameStop (GME), investors were monitoring NYSE-listed shares, with the exchange reportedly dealing with a technical issue that launched volatility halts in about a dozen companies, including Chipotle Mexican Grill (CMG).
