Here's Why GameStop Stock Just Exploded Higher
Shares of GameStop (NYSE: GME) were trading moderately higher on Wednesday until about 1 p.m. EST, when they started gaining a little momentum. Then, seemingly out of nowhere, the stock absolutely exploded higher. Trading was halted several times as it rapidly climbed to finish 104% higher for the day. And it's still climbing after hours.
Earlier this year, GameStop stock had an epic short squeeze, orchestrated by a group on Reddit called Wallstreetbets. This group noticed that short interest for GameStop stock was over 100%. With a clever combination of buying common shares and call options (called a gamma squeeze), the group was able to cause the price per share to go up, forcing many short-sellers to close their positions for massive losses.
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Source Fool.com
