AMC stock jumps nearly 15% as retail-fueled rally stretches to another week
Yun Li, 07 June 2021
AMC Entertainment, the meme stock that amazed Wall Street recently, rallied double digits on Monday as speculative trading activity in the struggling movie theater gained steam.
Shares of AMC jumped as much as 25% Monday, following an 80% rally in the previous week. AMC has dethroned GameStop to become the star on the infamous WallStreetBets forum on Reddit, with retail traders encouraging each other to pile into the shares and call options. AMC Shares closed 14.8% higher at $55 on Monday.
A call option is an instrument that gives an investor the right to buy a stock at a stated price within a particular time frame.
AMC has gained more than 110% in June alone after a 160% advance in May, pushing its 2021 rally to nearly 2,500%. The stock has far surpassed its January high amid the GameStop trading mania, hitting an intraday record of $72.62 last week.
Other meme stocks also traded higher Monday as momentum built. Bed Bath & Beyond advanced 7.2%, while BlackBerry popped 13.8%. GameStop gained 12.7%.
