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Unusual Options Activity Might Reveal the GameStop (GME) and AMC-led Meme Rally Will Continue Today

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Credit: Carlo Allegri - Reuters / stock.adobe.com

Yesterday, Gamestop Corp. (Symbol: GME) and AMC Entertainment Holdings, Inc. (Symbol: AMC) led the charge on an impressive Meme stock rally, with GME reaching a daily high of +36%, closing out the day +27% at $210.29. AMC closed out the day at $44.26, a 20% daily gain. As meme stocks soared yesterday the late day trading surge, short sellers knocked.

Throughout the day, we saw unusual or noteworthy call option activity flowing in for both GME and AMC. Looking at the Unusual Whales Flow, we can see via large and small orders alike that the bullish sentiment for GME's meme rally carried throughout the afternoon, with options orders flying in right up to the bell.

In the images below, the majority of unusual options activity revealed by the Unusual Whales Flow tool is tagged as bullish, seen in the green labels on the right column.

This is due to orders being placed on the ask side, with large premiums and volume, indicating buy-side pressure, meaning there is an expectation that the trend will continue.

Options chart

Caption: GME Flow; $20k+ Premium (time set to Central)

Options chart

Caption: GME Flow; $100k+ Premium (time set to Central)

In nearly identical fashion, AMC saw high-premium ($100k+) activity throughout the afternoon, and closed out the day with a flurry of orders at the very last second:

Options chart

Caption: AMC Flow; $100k+ Premium (time set to Central)

Options chart

Caption: AMC Flow; $2k+ Premium (time set to Central)

Following suit, a number of other stocks with previous “meme” status surged, with Clover Health (CLOV) heading into Tuesday’s close at just shy of +10% ($8.92), BlackBerry (BB) closed at +9.5% ($11.10). Both of these tickers also experienced a frenzy of options flow.

Options chart

Caption: CLOV Flow; $5k+ Premium (time set to Central)

Options chart

Caption: BB Flow; $7.5k+ Premium (time set to Central)

Time will tell whether or not this rally will continue throughout the day, but for some of these meme stocks, Pre-Market trading seems to maintain a bullish sentiment moving into market open. As of 8:55am EDT, AMC is up 3.05%, BB is up 2.7%, while GME is down 1.23% and CLOV is down 1%.

Whenever we see these meme stocks rally, we’re left wondering:

“How long will it last this time?”

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Unusual Whales

Unusual Whales uncovers unusual options, stocks, and crypto purchases, to equalize information for the retail investor. Follow at unusualwhales.com

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