Investors and observers alike have been watching the incredible price movement and volatility escalation of the retail gaming company GameStop (GME). On Jan. 11, the stock closed just under $20 per share. On Jan. 28, it traded as high as $450 per share intraday and closed at $193.60.
The stock is currently trading around $350 per share in after-market hours.
At the heart of the incredible price movement lies an intense tug of war between retail investors and at least one large hedge fund—although there have been a number of other hedge funds circling the situation and involved in a variety of capacities. Melvin Capital had established a large short position in GameStop, betting the company’s stock price would fall.Continue Reading