Shares jumped GameStop Corp By 10.6%, as retail investors pushed the stock higher in a renewed rally that could see it record its second best week.
Stock options market activity, which has returned to the top of the lists in the social media-driven retail frenzy, indicated that investors were betting on higher prices, higher volatility, or both.
GameStop shares touched $ 120.09 in pre-market trade. Its shares are set to triple this week, if gains continue. More support may come from option holders in GameStop stock, as a plethora of those weekly contracts matures on Friday.
The stock is still far from the $ 483 level it hit in January, as hedge funds that had bet against the video game retailer were forced to cover short positions as individual investors using Robinhood and other trading apps pushed the stock higher.
Refinitiv data on options showed that retail investors are buying deep non-cash call options, which are contract-price options to buy or sell away from current prices.
Many of these options deals are due to expire on February 26, and will mean good gains for those betting on another increase in GameStop’s stock price.
The data showed that the buy options that would be profitable for stockholders if GameStop stocks reach $ 200 and $ 800 this week were traded particularly heavily.
Meanwhile, GameStop’s Frankfurt listing decreased by 21.3% to trade at 98.19 euros, in a move that saw its value almost entirely match the value of US-listed stocks.