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Meme Stocks in Focus to End the Week

GME and CLOV are both seeing a surge in options activity

Deputy Editor
Jun 11, 2021 at 10:51 AM
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After a wild week, investors are still keeping an eye on several volatile meme stocks. AMC Entertainment Holdings Inc (NYSE:AMC) stock suffered a 13.2% drop yesterday, breaching its previously supportive 10-day moving average, and has been oscillating above and below flatline so far today -- last seen up 0.6% to trade at $43.07. The movie theater stock has been falling from its June 2 record high of $72.62, however, short interest still makes up an impressive 181.6% of the equity's available float. Meanwhile, analysts are wholeheartedly bearish on the social media-backed stock, with three of the four in coverage carrying a tepid "hold," while one sports a "strong sell."  Year-to-date, AMC is still up nearly 2,000%. 

The shares of GameStop Corp (NYSE:GME) suffered a post-earnings bear gap yesterday, closing down 27.2%. However, the equity is up 7.1% today to trade at $236.16 at last check. Though GME has enjoyed long-term help from its 80-day moving average throughout its Reddit-fueled surge, the $350 level has served as a ceiling for the stock's two most recent breakouts. Elsewhere, puts are running at double what's typically seen in the options pits, though calls are winning out on an absolute basis, with 55,000 calls and 40,000 puts across the tape so far. The most active option is the weekly 6/11 250-strike call, followed by the 200-strike put in the same session, with new positions being opened at both. This means plenty of traders are speculating on GME's price movement by the contract's expiration at the end of today. 

Lastly, Clover Health Investments Corp (NASDAQ:CLOV) is on track for its third-straight loss after shooting to record highs earlier in the week, down 3.6% to trade at $13.82 at last check. Year-to-date, the healthcare stock remains down 17.6%. CLOV is seeing unusual options activity today as well, with overall volume running at double its intraday average. So far, 76,000 calls and 51,000 puts have crossed the tape, with the June 20 call seeing the most activity. 

 

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