GME Eyes Annual Highs After Top Investor Ups Stake

The equity is up over 77% in 2020

Digital Content Manager
Sep 22, 2020 at 9:54 AM
facebook twitter linkedin


The shares of GameStop Corp. (NYSE:GME) just topped the elusive $10 mark for the first time in over 17 months this morning, after Ryan Cohen -- the company's biggest individual investor, and founder of pet supply e-tailer Chewy (CHWY) -- raised its stake in the video game retailer from 9.6% to 10%. Cohen revealed that he is in active discussions with GameStop's management and board members and promised to be more involved in pushing GME toward changes, including a broadening of its online product category and head-to-head competition with e-tail giants, including Amazon.com (AMZN). 

The stock is up 21% at $10.59 at last check, eyeing its best day in over a week. The once-struggling video game stock has enjoyed a recent breakout, actually, toppling former pressure at its 320-day moving average before eclipsing both its May 2019 bear gap, and its pre-pandemic highs. Now, GME is up over 77% for the year. 

Analysts still aren't convinced, which could leave the door open for bull notes, should this positive price action continue. Just two call GME a "strong buy," while four say "hold" or worse. Plus, the 12-month consensus price target of $6.20 is a 29.1% discount to last night's close.

Option traders, on the other hand, are gravitating toward bullish bets. In the past 10 weeks, 3.15 calls were picked up for every put at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher  than 99% of readings from the past year, suggesting a healthier-than-usual appetite for long calls of late. 

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Best stocks for October and worst stocks for October
 


 


 
Special Offers from Schaeffer's Trading Partners