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GameStop Corp. (
GME) - Get Report shares surged higher Tuesday, following several volatility halts on the New York Stock Exchange, after billionaire investor Chamath Palihapitiya joined the fray in chasing Wall Street's hottest stock.
Palihapitiya, the CEO of Social Capital and part-owner of the Golden Sate Warriors basketball franchise, said he had purchased call options that would allow him to purchase GameStop at $115 a share in February, just as shares in the world's biggest video game retailer were changing hands at $93.70 per share.
A call option gives the buyer the right, but not the obligation, to purchase an asset at a certain price at a specified point in time.