This Content Is Only For Paid Member
In a flurry of activity, traders are placing bullish bets on GameStop Corp., speculating that the stock will surge by 50% within a brief two-week period. The options market for GameStop is experiencing significant volume, with a notable focus on a December 8th $20 call option that changed hands 17,500 times by midday in New York. The majority of these positions appear to be freshly initiated, traded in small blocks throughout the morning, hinting at potential involvement from individual retail traders.
GameStop has historically been a favorite among the Wall Street Bets community, known for propelling the stock up by a staggering 2,700% within a few weeks in January 2021. Daniel Kirsch, Head of Options at Piper Sandler & Co., acknowledges the current activity as reminiscent of the meme stock craze, albeit on a smaller scale. However, he remains cautious, expressing doubt that the stock will experience another surge similar to the one witnessed during the Covid-19 lockdowns.
The December 8th call options were relatively inexpensive, ranging from 6 cents to 21 cents per contract. These positions also encompass GameStop’s upcoming earnings report scheduled for December 6th. Despite options markets implying a 12% move in the underlying shares, it falls short of the advance needed to render the December 8th call option in-the-money.
Tags: GameStop, Options Market, Bullish Bets, Wall Street Bets, Retail Investors, Stock Rally, Volatility, Earnings Forecast, Speculative Trading
