GameStop Stock Blindsided By CEO Split

It's been a rough year for GameStop

May 11, 2018 at 1:37 PM
facebook X logo linkedin

GameStop Corp. (NYSE:GME) keeps getting hammered. The shares of the video game retailer have given back roughly half their value over the past 12 months, and today they're trading down 3.7% at $12.55, after the company announced the resignation of CEO Michael Mauler, who just took the position in February. Co-founder Daniel DeMatteo was named interim CEO, effective immediately.

Telsey Advisory lowered its opinion on GME shares even before the news broke this morning, dropping its price target to $15 from $17. Loop Capital, meanwhile, said a management shake-up is "the last thing GameStop needs." Still, the brokerage firm maintained its "hold" assessment, citing the stock's extremely low valuation.

Some options traders are staying optimistic, too. There appears to be buy-to-open activity at the October 12 and May 12.50 calls today, which would be bets on more upside in the months ahead. This is nothing new, though, as call buying was more popular than put buying during the past 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX).

Some of the recent call activity could have been from short sellers, who continue to target GME. Short interest rose another 25.6% in the past two reporting periods, and now accounts for 41.6% of GameStop's float. As such, unusual buying at out-of-the-money calls could be attributed to hedging from these bears.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI