This week marked a resurgence of the ‘meme stock craze’ as key players from the 2021 phenomenon, such as GameStop (NYSE: GME) and AMC Entertainment (NYSE: AMC), reclaimed the spotlight.
Retail traders exhibited a renewed interest in these stocks over the past two trading sessions, highlighting a heightened appetite for speculative ventures.
In the midst of this unexpected surge, one trader made a remarkable move, transforming a $70,000 investment into a staggering $1.28 million in just two days through strategic entry and exit maneuvers within the realm of these meme stocks.
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What happened?
In an extraordinary stock trading stratagem, a trader took advantage of the recent abrupt surge in GameStop’s share price, successfully turning a $70,000 investment into $1.28 million in just two days on November 30.
According to the stock news account unusual_whales, the trader made this staggering profit by engaging in the GME trade “targeting $20 calls this Friday, next Friday, and the Friday after that, have exited some of their position in the last hour,” the popular X account explained.
For the GME $20 calls dated December 8, 2023, the trader “did around $70k, filled at $0.11. They exited last hour for an average of $1.71, for around $1.28 million.”
That represents a roughly 1,400% return on investment as a result of GME’s huge upswing.
Over the past two days, the stock gained around 28%, surging from below $12 to around $17.3 on Wednesday, November 29. On Thursday, the meme stock lost some of these recent gains, falling over 5.5% at the market open to $15.35.
Apart from GameStop, AMC’s shares also draw speculative interest among retail traders, surging above $7.3 on Wednesday. More than 32.5 million AMC shares were traded on the day, the highest volume since November 9.
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