Michael M. Santiago / Getty Biller News
Share of GameStop (NYSE: GME) + 27% are rally sharp Tuesday without clear catalyst, reminiscent of the movements at the One year ago, Meme Stock Company could be bought.
The stock is looking at a sixth straight session of gains and has cleared all the losses seen this month. The stock has risen above the 50-day simple moving average today.
GME made more than 400 entries on the WallStreetBets subreddit, up from 115 yesterday, according to Quiver Quantitative, which also recorded nearly 800K off-exchange short sales on Monday.
Short interest rate is around 18%, well below levels when GME has seen short squeeze. But market observers have noticed a pickup in the out-of-the-money call purchase, which could produce a gamma-squeeze effect. In a gamma-squeeze, call writers buy underground stocks, increase demand and increase price.
Search alpha contributor and GME bearer John Miller wrote today that “despite the icy headline revenue loss, the recently announced vacation quarter results have been the best news for the company’s business fundamentals since the announcement of the strategic partnership with Microsoft in 2020.”
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