GameStop (NYSE:GME) fans have been ready to take things to the next level this week, starting with a 100% rally in GME stock on Wednesday. Now, looking at options on the stock, it appears end game could be an $800 share price. Can Redditors actually make that happen? And what else do you need to know right now?
To start, here is a quick recap of what happened this week. On Wednesday, investors learned that GameStop CFO Jim Bell would resign at the end of March. This instantly sparked speculation around the turnaround story. With activist investor Ryan Cohen now on the board, there is hope that the newest CFO will have a background in tech or e-commerce. If that happens, GameStop could move away from failing brick-and-mortar stores and into a video game powerhouse.
This thought alone led to a 100% rally in GME stock on Wednesday, and the gains have carried over throughout the week. At the time of writing, shares are up 11%.
However, some investors are confident that much bigger gains are coming… and some are betting those gains could come as soon as today. As Bloomberg reported, the most-active option traded on GME stock on Thursday was a contract betting GameStop would hit $800 on Friday. According to Bloomberg data, 52,000 contracts traded hands betting on a one-day gain of 636%.
Beyond that, other actively traded options on GameStop similarly focused on the $800 target. The only difference is the timeline. Some investors are betting shares hit that lofty goal on March 5. Others are betting on that target coming to fruition on March 19.
With that all in mind, what do you need to know now?
What to Know About GME Stock and the $800 Goal
There is no denying that retail investors are bullish on GameStop and other Reddit stocks. The Wednesday rally instantly sparked talk of diamond hands, rocket ships and trips to the moon. Posters on r/WallStreetBets shared feelings of validation. Those who continue to hold GME stock are looking for a return to highs above $480.
Beyond that, there is a lot of optimism around the idea of a second short squeeze. Yesterday kicked off with a broad rally in Reddit stocks like AMC Entertainment (NYSE:AMC), Nokia (NYSE:NOK) and BlackBerry (NYSE:BB). Although top names cooled off by the closing bell, it is clear that potential is still there. That lines up with what legendary investor Mark Cuban said. Rooting for the little guys, Cuban says we should see more short squeeze action in the future. That enthusiasm likely drove the Reddit stocks rally this week. And it is also driving those $800 targets on GME stock.
No matter what, keep the GameStop and Reddit story on your radar. Whether GME hits double-digit levels again or actually rockets higher, there is a lot to learn.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.