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<a href="https://coingape.com/gamestop-gme-no-longer-a-short-prospect-for-citron-research-heres-why/" target="_blank" rel="noopener noreferrer nofollow">GameStop</a> (GME) stock price has maintained its selloff over the past 5 days. The shares have nosedived by 7.11% to $23.97 as of the time of this writing.
<h2 id="strong-gamestop-sees-surge-in-implied-volatility-strong">GameStop Sees Surge in Implied Volatility&nbsp;</h2>
On Friday, the GME dropped by 3% just around the time when certain unusual options activity were discovered. This price movement underscores an ongoing volatility sentiment around the meme stock. Popular stock market data resource Unusual Whales highlighted the volatile state of the video game retailer’s options market.
The $125 calls expiring Friday experienced a significant surge in Implied Volatility (IV). It moved from 650% on Wednesday to 1,127% the following day. This spike in IV suggests significant uncertainty and speculation about the stock’s near-term movements. To a large extent, traders may expect a sizable fluctuation in price as a result of the high IV in GameStop’s options.
This outlook can further directly impact on the stock price by creating additional volatility as these positions are bought and sold. For context, options trading offers investors an avenue to speculate on the future price of a stock to the point that they can place bets on its movements.
It is worth noting that GameStop’s current volatility is part of a broader narrative of speculative trading that has engulfed the stock for the past year.
<h2 id="strong-roaring-kitty-s-return-influences-gme-price-strong">Roaring Kitty’s Return Influences GME Price&nbsp;</h2>
Meanwhile, the return of GME trader and influencer <a href="https://coingape.com/gamestop-jumps-300-as-roaring-kitty-takes-huge-gme-call-options/" target="_blank" rel="noopener noreferrer nofollow">Roaring Kitty, aka Keith Gill</a>, is a major trend fueling the recent volatility. Gill’s bullish posts on X&nbsp;and livestreams contributed significantly to driving the 2021 meme stock surge. He has been away for up to three years but suddenly showed up in May during which the price of the stock saw a surge.
Last week, he revealed that he boosted his position in GME from 5 million to approximately 9 million shares. This is equivalent to about $223 million worth at the current price of the stock. The <a href="https://coingape.com/roaring-kitty-loses-350-million-in-profits-as-gamestop-tanks-over-50-in-two-days/" target="_blank" rel="noopener noreferrer nofollow">present price dip</a> in the sentiment of GameStop coincide with another moment of silence from the trader.
It may also be a function of the recent announcement from <a href="https://coingape.com/gamestop-gme-plunges-13-after-unexpected-announcement-from-ceo/" target="_blank" rel="noopener noreferrer nofollow">GameStop CEO Ryan Cohen</a>. He stated that the video game retailer’s plans is to operate a smaller network of stores nationwide,. Cohen added that his focus for the gaming company is to achieve profitability and not current hype. Immediately after he made this announcement, GameStop shares went down by 13.4% and traded at $24.86.
The further drop to $23.97 could be a carry-over effect of Cohen’s announcement and the unexplainable Roaring Kitty’s silence.
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The post <a href="https://coingape.com/why-is-gamestop-gme-down-7-11-today/" rel="noopener noreferrer nofollow">Why is GameStop (GME) Down 7.11% Today</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Why is GameStop (GME) Down 7.11% Today

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Інші статті, опубліковані 21 черв. 2024 р.

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