GameStop shares retreated in early Tuesday dealing but remain one of the most active names in the market, as reports suggest the Securities and Exchange Commission is looking into options trades tied to the videogame retailer and a noted investor revealed a new bet against the surging meme stock.
GameStop (GME) shares added around $2 billion in market value yesterday following a 21% surge tied to weekend social-media posts from the influential retail investor Keith Gill, who is better-known as Roaring Kitty from the WallStreetbets channel on Reddit.
The stock in fact has added more than $3 billion in value since May 9, when Gill broke his social-media silence and posted an image that investors tied to GameStop's fortunes.
An account tied to Gill on the Reddit platform, meanwhile, indicated a weekend position of 5 million GameStop shares, as well as call options enabling him to potentially purchase 12 million more.
By the close of trading on Monday, those positions were valued at $289 million, making him the fifth-largest investor in the Grapevine, Texas, retailer and producing a single-day gain of around $79 million.