Shares of AMC Entertainment Holdings (AMC.N) rose on Monday, setting the stage for another week of roller coaster trading in shares of the movie chain operator and other favorites of retail investors.
AMC shares recently rose 18.3% to around $ 58.50 after rising 3% last week. The company said in a filing last week that more than 80% of its shares were held by retail investors.
Gatherings within AMC and video game retailer GameStop (GME.N), as well as a new crop of so-called meme stocks – companies popular with retail investors gathering on forums like WallStreetBets from Reddit – breathed new life into a frenzy that first garnered widespread attention in January, when an unwinding of bearish bets helped to push GameStop shares up more than 1,600% that month.
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Billionaire investor Paul Tudor Jones of Tudor Investment Corp told CNBC on Monday that the “craziest mix of fiscal and monetary policy” had helped fuel the meteoric rallies of some meme stocks as well as other assets, such as special purpose acquisition companies or PSPCs.
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“Things are absolutely crazy and at some point you have to say, ‘Slow down, let’s get back to the lanes and we’ll drive like before,” Tudor Jones said on CNBC.
GameStop shares recently fell more than 3%, but rose 1,100% this year, while AMC’s shares rose about 2,650%.
AMC options volume was significant, with 630,000 contracts trading at 11:40 am (3:40 pm GMT), according to data from Trade Alert. Options that expire on Friday accounted for nearly 40% of the trade, with call options paying money if AMC shares rise north of $ 55, $ 60, and $ 70 in large volume.
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Investors also focused on vaccine developers, with Novovax shares fluctuating sharply after the company reported late-stage data from a US-based clinical trial showing its vaccine to be effective at more than 90% against COVID-19 in various variants of the virus.
Shares of the company reversed the initial gains and recently lost around 2.3% to $ 204.75 after approaching $ 230 earlier in the session.
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Meanwhile, shares of gaming equipment maker Corsair Gaming Inc (CRSR.O) jumped 16%. The company – which owns an 18.25% short stake in the float, according to data from Refinitiv – was the trending stock on Stocktwits earlier Monday, with a 26.9% jump in message volume.