Sign Up on MEXC
Highlights
- GameStop has sustained its nosediving trends with new 7.11% slump
- The stock has dropped for the past 5 days as traders capitulate
- Bearish dive might be connected to Roaring Kitty's silence
GameStop (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.
GameStop Sees Surge in Implied Volatility
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.
Roaring Kitty’s Return Influences GME Price
Meanwhile, the return of GME trader and influencer Roaring Kitty, aka Keith Gill, is a major trend fueling the recent volatility. Gill’s bullish posts on X 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 present price dip 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 GameStop CEO Ryan Cohen. 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.
Read More: Is Michael Dell Warming Up to Bitcoin After Playful Crypto Tweet?
- Bitwise Files S-1 for Avalanche ETF With SEC Following Delaware Registration
- REX-Osprey Dogecoin and XRP ETFs Set to Launch September 18
- Coinbase’s Base Explores Issuing Network Token to Power ‘Global Economy’ Push
- Trump Urges Powell to Make a Larger Fed Rate Cut Ahead of FOMC Meeting
- Breaking: PayPal to Integrate Bitcoin, Ethereum, PYUSD In New P2P Payments System
- Solana Price Prediction: Analyst eyes $1,250 as Galaxy Digital and Forward Industries Intensify Accumulation
- Trump Coin Price at Risk of a 16% Dive as Open Interest, Whale Selling Intensify
- Hype Price Prediction Gains Momentum — Is USHD Launch the Fuel for $72 Target?
- Bitcoin Price Prediction: Q4 Rally Looms as ETF Inflows Hit $642M—Analyst eyes $150K
- Pepe Coin Price Prediction as the Token Jumps Nearly 20% – Will Whale Accumulation Take it to $0.00003?
