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GameStop Surges And Options Traders Plan To Bank On A Moon Shot

Benzinga2021-05-26

GameStop Corporation(NYSE:GME) surged over 20% on Tuesday despite the general markets trading slightly lower. Since the epic short squeeze that took place in January, there has often been an inverse correlation between GameStop and theSPDR S&P 500 ETF(NYSE:SPY).

The company is set to print its first-quarter 2021 earnings results after the close on June 8. After reporting itsfourth-quarter 2020earnings, GameStop’s stock plummeted almost 35% in a single day. GameStop reported sales of $2.12 billion, missing the analyst consensus estimate of $2.21 billion and earnings per share of $1.34 per share, which missed the analyst consensus estimate of $1.33.

The morning before postings its last quarterly earnings, GameStopannouncedits Chief Customer Officer Frank Hamlin would be leaving the company, which may have contributed to the sell-off.

Options traders may believe first-quarter earnings will blow investors away or that a big announcement is imminent and bet $367,915 that GameStop will make a 122% parabolic rise toward $800 before July –nearly double GameStop's previous all-time high of $483.

The GameStop Option Trades: Below is a look at the notable options alerts, courtesy ofBenzinga Pro:

  • At 9:47 a.m., Tuesday a trader executed a call sweep, near the ask, of 269 GameStop options with a strike price of $800 expiring on July 16. The trade represented a $98,185 bullish bet for which the trader paid $3.65 per option contract.
  • At 10:31 a.m., a trader executed a call sweep, near the ask, of 233 GameStop options with a strike price of $800 expiring on July 16. The trade represented a $86,210 bullish bet for which the trader paid $3.70 per option contract.
  • At 10:35 a.m., a trader executed a call sweep, near the ask, of 290 GameStop options with a strike price of $800 expiring on July 16. The trade represented a $107,300 bullish bet for which the trader paid $3.70 per option contract.
  • At 11:49 a.m., a trader executed a call sweep, near the ask, of 206 GameStop options with a strike price of $800 expiring on July 16. The trade represented a $76,220 bullish bet for which the trader paid $3.70 per option contract.

Why It’s Important: When a sweep order occurs, it indicates the trader wanted to get into a position quickly and is anticipating an imminent large move in stock price. A sweeper pays market price for the call option instead of placing a bid, which sweeps the order book of multiple exchanges to fill the order immediately.

These types of call option orders are usually made by institutions, and retail investors can find watching for sweepers useful because it indicates “smart money” has entered into a position.

GME Price Action: Shares of GameStop were trading up 16% to $208.87 at publication time.

免责声明:本文观点仅代表作者个人观点,不构成本平台的投资建议,本平台不对文章信息准确性、完整性和及时性做出任何保证,亦不对因使用或信赖文章信息引发的任何损失承担责任。

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评论33

  • 李育儒
    ·2021-05-26
    earnings per share of $1.34 per share, which missed the analyst consensus estimate of $1.33.Is the author illiterate? GameStop post EPS $1.34 but missed analyst consensus estimate of EPS $1.33?I remember the original article was consensus estimate of EPS $1.35.Sure it had missed by 1 cent EPS, but does it justify a 35% down in a single day?It is clear market mani-pulation by hedgies. This is the next $亚马逊(AMZN)$, $苹果(AAPL)$. Do NOT sell this unless it is like ~$10m. Once the earnings are out, I am seeing $游戏驿站(GME)$to be a dividend stock again by next year.
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  • xsinnedx
    ·2021-05-26
    GameStop never stops playing games with our feelings
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  • Jo5tarz
    ·2021-05-26
    Game stop never stop[得意] 
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  • Ruixiang
    ·2021-05-26
    Comment 
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  • Mythology
    ·2021-05-26
    No stopping this game
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    收起
    • Jo5tarz
      Ttm!
      2021-05-26
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    • okkar
      The Game must go on!
      2021-05-26
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    • okkar
      🚀
      2021-05-26
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    查看更多 2 条评论
  • Wintoto
    ·2021-05-26
    Good
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  • Vincewjs
    ·2021-05-26
    Crazy that this is still ongoing 
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    • koolgal
      Yes
      2021-05-26
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  • kerin
    ·2021-05-26
    Great... 
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  • 6fba50d8
    ·2021-05-26
    Nice
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  • newwen
    ·2021-05-26
    Up
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    • newwen
      moon
      2021-05-26
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    • newwen
      comment me pls
      2021-05-26
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  • vendi
    ·2021-05-26
    This is the way
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  • SimonChan
    ·2021-05-26
    Tell me your opinion about this news...
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  • SimonChan
    ·2021-05-26
    Heading to the Moon 🚀 
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  • Zwei2
    ·2021-05-26
    Comment
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    • Zwei2
      🚀
      2021-05-26
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    • Venus888
      pls like and comment
      2021-05-26
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  • sharonyim
    ·2021-05-26
    pls comment and like 😊
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    • Reds
      Sane
      2021-05-26
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    • HH浩
      Reciprocate
      2021-05-26
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    • sharonyim
      pls like and comment 😊
      2021-05-27
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    查看更多 2 条评论
  • Tothestars
    ·2021-05-26
    Once again?
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  • Cassandra88
    ·2021-05-26
    TQ
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  • Fei2
    ·2021-05-26
    Again 
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  • NicNg
    ·2021-05-26
    Please like and comment thanks
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    • Fei2
      Yes
      2021-05-26
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    • NicNg
      ThanKs
      2021-05-26
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  • Darren95
    ·2021-05-26
    Omg
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    • Fei2
      Opportunity?
      2021-05-26
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