Chewy stock surges 34% after RoaringKitty tweets a picture of a dog
And so we enter the dog days of summer.
Shares of Chewy were halted for volatility after surging more than 34% when this happened:
— Roaring Kitty (@TheRoaringKitty) June 27, 2024
Roaring Kitty is Keith Gill, the GameStop uber-bull who amassed a position in the beleaguered video game retailer of about $230 million, based on a mark-to-market of his most recent update from June 13.
Why did Chewy surge so much more than, say, Petco? (It’d also be a fair question to wonder, “Why is anything be moving at all on this?”)
Well, we know Keith Gill is a huge fan of Ryan Cohen, the current GameStop CEO who co-founded Chewy (and stepped down from running Chewy in 2018).
That seems to be the long and short of it.
It’s unclear whether Gill has any position in the pet food and products e-commerce company, or anything other than GameStop.
But, given Gill’s recent history with relatively short-term call options, it’s probably worth noting that two of the seven biggest one-day increases in open interest for call options on Chewy have occurred quite recently (June 18 and 25). In particular, we’ve seen a surge in appetite for the $30 and $35 call options that expire July 19.
Since Gill’s return to social media on May 12, shares of Chewy were up nearly 89% heading into Thursday versus a 39% rise for GameStop.
