This week, meme stocks re-entered the spotlight amid Bed Bath & Beyond’s (BBBY) secured distribution deal with the supermarket chain, Kroger’s (KR) initial 66% stock surge — with the respective move likely supercharged by a short squeeze as 60% of the float was sold short.
It dragged some of the original meme stocks back into the mix with AMC (AMC) and Gamestop (GME) jumping 14% and 12% at one point, while secondary names such as Blackberry (BB) and Virgin Galactic (SPCE) got some 5% of love. Of course, all were accompanied, and most likely turbo-charged, by heavy options activity. Specifically, YOLO short-term out-of-the-money calls can lead to a gamma squeeze.
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