Legendary investor Bill Gross who profited $10 million from GameStop (NASDAQ: GME) stock rally in January is betting against the game retailer again. During an interview with BloombergTV on Tuesday, Gross discussed positioning himself against Game
“The volatility is super high… and promoting an ability to make some money,” he explained.
Gross, co-founder and former CEO of Pimco said he sold contracts called “call options” with “strike prices” of $250 and $300. This means he will be gaining if the stock keeps trading below the $208.20.
Nevertheless, Gross could lose if the GME stock leads another rally. The loses could be substantial if prices jump over $300 as it did in January. This new year rally was due to WallStreetBets Reddit group investing heavily in the stock.
Gross profited $10 million from battle between bulls and shorts
In January, amateur investors – led by YouTuber and Redditor Keith Gill – “Roaring Kitty” – made a hard bet on GameStop stock. Redditors resulted in an epic battle between bulls and Wall Street financial institutions and giants acting as short-sellers of the American game retailer stock. The battle had pushed GME to its all-time high price of $480 before suffering a severe correction. This ‘correction’ drove stock prices back down to $60 in February.
