One Reddit day-trader claims to have turned $53,566 in GameStop call options into more than $11 million in just over a year
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A day-trader on popular
The user going by 'DeepF-----gValue' - censored for content - showed he turned an initial investment of $53,566 in GameStop call options into a stack of $11.2 million.
Several Redditors have increased their wealth at the expense of GameStop haters who were betting on the company's inflated valuation, but this user has so far turned out to be the champion.An obsession with the video-retailer by online traders has fuelled outsized volatility over the past three weeks, followed by numerous trading halts. Bullish bets began around the time GameStop agreed with activist investor RC Ventures to add three members, including Chewy founder Ryan Cohen, to its board. The board overhaul was largely seen as a positive for the retailer.
Members on the WallStreetBets community piled into the stock on January 13, encouraging one another to push out short-sellers holding bearish positions. The stock closed 51% higher that same day. A handful of retail traders on TikTok also crowed about how GameStop was going to see frenzied buying again. GameStop's shares are up 633% since the end of October and 308% year-to-date. "A wild ride and the retailWhat happened with GameStop's stock is a reminder of how times are changing, according to Edward Moya, a senior market analyst at OANDA.
"A new army of traders are not focused on valuations, but rather by momentum opportunities they see from Reddit's WallStreetBets, YouTubers, TikTok, or Robinhood," he said. "Top research shops will now have to consider how millennial traders are positioning themselves. GameStop does not deserve a valuation over $90, but that might not matter if influencers keep retail traders buying."
GameStop shares rose a further 14% in pre-market trading Tuesday, to $88.83 per share.Copyright © 2021. Times Internet Limited. All rights reserved.For reprint rights. Times Syndication Service.
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