Home » World News » Meme stock Bed Bath & Beyond soars after investor Ryan Cohen's latest bets
Meme stock Bed Bath & Beyond soars after investor Ryan Cohen's latest bets
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Shares of Bed Bath & Beyond Inc surged 60% to a near five-month high in volatile trading on Tuesday, as retail investors flocked to the stock after a filing revealed activist investor Ryan Cohen's latest bet on the home goods retailer.
The stock rose as much as 78.8% to $28.60 during the session and trading was halted multiple times for volatility.
BED BATH & BEYOND INC.
Cohen's investment vehicle RC Ventures, which is the second-largest investor in the company and has added three independent directors to its board, bought call options expiring in January 2023 on 1.67 million shares with a strike price ranging from $60 to $80.
An option gives the buyer the right to buy or sell a security at a given price on a given date. Buying a call option is essentially betting the underlying asset will rise in price.
"You see his name (Cohen) associated and it gets the buzz going. So right now social media buzz is flying around Bed Bath and Beyond and it is spilling over other stocks as well," said Dennis Dick, retail trader at Triple D Trading.