2023-11-29 06:55:00
The options in GameStop Corp. register enormous volume, since operators They bet that the shares will rise 50% in just over a week.
A US$20 call option on December 8 had changed hands 17,500 times by midday in New York. The vast majority of positions were recently opened and traded in small blocks throughout the morning, a sign that appetite could come from traders individual retailers.
GameStop has long been a favorite of participants in the Wall Street Bets forum, which They drove the stock up 2,700% in a few weeks in January 2021. The trade “brings back memories of the meme craze, although on a much smaller magnitude,” said Daniel Kirsch, head of options at Piper Sandler & Co. He doesn’t think, however, that the stock is likely to see another rally. like the one that occurred during the Covid-19 closures.
Call options on December 8 were cheap, between 6 and 21 cents per contract. The positions will also take advantage of the video game retailer’s earnings report, scheduled for December 6. Options markets forecast 12% move in underlying stockswell below the advance necessary for the December 8 purchase option to be “in-the-money”, or in money, according to data compiled by Bloomberg.
Translated by Paulina Munita.
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