GameStop's CFO will step down on March 26
The shares of GameStop Corp. (NYSE:GME) are on the rise this morning, last seen up 1.3% at $45.55, after it was reported that its chief financial officer (CFO) Jim Bell will be stepping down. Bell's resignation is set to take place on March 26. While one source said the departure is separate from the Reddit-fueled trading frenzy that's kept GME in the spotlight, it was initiated by the company. GameStop did note, however, the resignation was not due to any operation-related disagreements.
On the charts, GME is down significantly from its Jan. 28 all-time high of $483 -- a level attained during the aforementioned frenzy -- but the equity is still trading at over double what it was entering 2021, boasting a 143.4% year-to-date lead. Meanwhile, the 80-day moving average is in place as a consistent layer of support, and, longer term, GameStop stock is up nearly 1,200% year-over-year.
The story of GME's historic short squeeze seems to be winding down, though short sellers are continue to flood the exits. Short interest fell 69.9% during the last two reporting periods, but the 21.41 million shares sold short still account for a whopping 42% of the security's available float.
In the options pits there has been a strong preference for puts over the last 2 weeks. This is per GME's 10-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 82% of readings from the past 12 months. Echoing this, the equity's Schaeffer's put/call open interest ratio (SOIR) of 3.97 stands higher than 94% of annual readings, meaning short-term option players have rarely been more put-biased.
Now looks to be the perfect time to purchase premium on GameStop options. The stock's Schaeffer's Volatility Index (SVI) of 161% sits in the low 18th annual percentile. Additionally, the security's Schaeffer's Volatility Scorecard (SVS) sits at a relatively high 77 out of a possible 100, which means GME has tended to exceed volatility expectations during the past year -- a boon for option buyers.