Meme fatigue may be a factor with GameStop and Chewy

The sudden spikes in Chewy (NYSE:CHWY) and Petco Health and Wellness Company (NASDAQ:WOOF) in midday trading on Thursday following a Roaring Kitty social media post of a dog did not last long. Both stocks fell in tandem pretty quickly later in the day. It was a different story on Friday, as Chewy (CHWY) shed 7.15% and was down almost 25% from its high on Thursday, while Petco (WOOF) rallied more than 13.14%. After all was said and done, it is not even clear that Roaring Kitty has a position or strong interest in either CHWY or WOOF.

Options activity on both Chewy (CHWY) and Petco (WOOF) has been higher than normal this week. Short traders have a 13.8% position in CHWY, while short interest on WOOF stands at 19.8% of the total float.

As for the mothership of meme stocks, GameStop (NYSE:GME) is down 1.20% in Friday afternoon trading and is almost 50% lower than the May high. Even after Roaring Kitty’s YouTube webcast and GameStop’s (GME) short annual meeting webcast, it is unclear what the master plan is for GameStop (GME) and long traders. However, it is believed that GameStop (GME) has a cash position of more than $4 billion, which could give it some interesting levers to pull.

The only ETF with a position in GameStop (GME) of over 4% of its total holdings is the VanEck Video Gaming and eSports ETF (ESPO).