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NEW YORK (Reuters) - Shares of U.S. videogame retailer GameStop skyrocketed by 144% on Monday as short sellers scrambled to cover their positions in the stock, which then pared gains in a roller coaster session that featured nine trading halts for volatility.
FILE PHOTO: Outside a GameStop store people line up to purchase a Sony PS5 gaming console in the Manhattan borough of New York City, New York, U.S., November 12, 2020. REUTERS/Carlo Allegri
Options activity also surged in the stock, which had gained 245% so far this year as of Friday’s close. It closed Monday’s session up 18% with $16.7 billion worth of GameStop shares traded more than triple the company’s actual stock market value.
Trading volume in U.S. equity options hit a new record on Friday, according to data from options analytics provider Trade Alert. More than 49.5 million contracts traded during the session, Trade Alert said. Friday marked the expiration of monthly options contracts, which often results in heavier-than-usual volume. This year, some 416 million U.S. equity options .
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