Traders who were lucky enough to have bought early during the latest meme stock craze are making huge gains.
Unusual Whales, which tracks business data, job on Twitter, the activity of a trader who invested $27,000 in call contracts on April 24, when their price was $0.21 per unit.
The contracts then peaked at $13.63, meaning the investment would have generated gains of 6,400%, turning $27,000 into $2 million, according to the company.
Damn, this trader turned thousands into millions with GameStop, $GME.
This $GME the trader got $25 call contracts expiring 05/17/2024 at an average of $0.21, for 27,000.
They peaked at $13.63.
Assuming he stayed, that's a 6,400% return, turning $27,000 into over $2 million. pic.twitter.com/Ogi1CX4Tks
In another article, the data platform watch the trading moves of a person who exited after 4,000% gains following a $32,000 buyback of AMC Entertainment (AMC) stock options nine days before Roaring Kitty's Twitter account came to life again on Sunday.
Purchase contracts give buyers the right to buy a stock at a specified price and date, but not the obligation.
He'It's unclear how investors who held on to GME during the 2021 boom and bust fared compared to new entrants during the latest hype cycle. Unusual Whales did not immediately respond to a request for comment from Decrypt.
Meme stock mania return to the markets Monday after an internet personality inspired the 2021 GameStop rally put online for the first time in years. Over the past five days, GME stock is now up more than 200%.
Roaring kitten (whose real name is Keith Gill) help powering the 2021 rally via Reddit posts and live streams. His first tweet in nearly three years on Sunday evening prompted traders to snap up meme stocks and meme digital coins and tokens.
In 2021, shares of endangered companies like GameStop became popular on internet forums after amateur traders began pricing them. That led to chaos on Wall Street — and government intervention — after hedge funds that had shorted the stocks lost after their value suddenly rose.
Cryptocurrencies also saw a boom around this time, with the value of coins and tokens in particular increasing. They have since seen a resurgence and some now constitute the leading digital assets in terms of market capitalization.
Virtual assets, based on internet jokes and usually extremely volatile, have this week gained value with traditional actions.