Source: Golden Ten Data
Next Wednesday, Gaming Station will host the release of its three-quarter report. Traders are placing their bets on bullish options on this stock ahead of schedule.
in$GameStop (GME.US)$As the three-quarter report is about to be released, traders are buying deep off-price bullish options on this stock, which indicates that investors' interest in “Meme Stocks” (Meme Stocks) may be boosted once again.
The call options contract associated with GME expires on December 8, and the exercise price is $20. Trading volume has surged in recent days.
As of Wednesday morning, there were more than 15,000 open positions on these contracts. In the first 30 minutes of Wednesday's trading session, these specific contracts were traded in excess of 4,000 lots.
Traders who buy these call options bet that GME shares will soar by about 28% from current levels to above $20 by December 8. If the stock trades below $20 by December 8, these options will have no value.
Gaming Station is scheduled to release its three-quarter report after the US stock market on December 6 (Wednesday), which means that traders are pinning their hopes on the company's earnings report to push up the stock price.
GME experienced a sharp rise this week, with shares rising 32% on Tuesday and Wednesday.
According to Bloomberg, trading activity for $20 call options was driven by small volume transactions, which suggests that large purchases may be driven by retail investors rather than institutional investors.
GME has long been considered the original meme stock that sparked a series of market activity in early 2021 as retail investors poured into the stock market during the pandemic.
Since GME reached a split-adjusted high of $120.75 in January 2021, the stock has fallen 87%. Investors pinned their optimism about the stock on its current chairman and CEO Ryan Cohen (Ryan Cohen), hoping he could lead the company to turn a loss into a profit.
Whether or not GME continues to soar, the stock is likely to continue to fluctuate in both directions as it prepares to release financial reports. The calculation of the December 8 parity options contract shows that according to Wednesday morning's option prices, the implied stock price volatility was 26% before the company's financial report was released.