The stock market has been experiencing a strong rally, fueled by expectations of falling interest rates in the first half of next year. However, what's interesting is that this time it's not just the usual suspects driving the surge. Retail investors, known for their penchant for risky meme stocks, are once again making their presence felt.
One such stock that has caught the attention of traders is GameStop (GME), the iconic meme stock that started a trading frenzy among retail investors earlier this year. With the company set to announce its quarterly earnings on December 6, traders are once again flocking to GameStop.
On Tuesday, GameStop shares rose by an impressive 13%, and by premarket trading on Wednesday, they had already gained another 12%. This surge has led some traders to believe that the stock could jump by another two-thirds in just a week. To capitalize on this potential gain, many traders are turning to call options contracts expiring on December 8 with strike prices of $22 and $22.50.
Despite the fact that we are now three years removed from the 2021 meme stock mania, GameStop seems poised to recreate the rollercoaster ride it provided back then.