GameStop Stock Continues Climb Before Earnings

The equity has a history of moving lower after earnings

Deputy Editor
Jun 9, 2021 at 10:36 AM
facebook twitter linkedin


The shares of GameStop Corp. (NYSE:GME) are extending their premarket gains, last seen 2.4% higher to trade at $307. The proverbial "meme" stock is in large part responsible for the latest craze among retail traders, so it will be interesting to tune into GameStop's upcoming first-quarter earnings call, slated to take place after the close today. Below, we'll take a look at the stock's current technical setup, and dive into what the options market is pricing in for the video game retailer's post-earnings move.

The Reddit-fueled trading frenzy has pushed GameStop stock higher on more than one occasion over the course of the year, with spikes above the $340 level occurring in January, March, and June. It's most recent run up the charts has been aided by the ascending 80-day moving average. Boasting an incredible 5,966.8% year-over-year lead, GME is pacing for its fourth-consecutive week of gains. 

Regarding the security's earnings history, GameStop stock has closed lower the day after reporting in all but one of the past eight quarters. In fact, its last three quarterly reports have resulted in drops of 33.8%, 19.4%, 15.2% respectively. Over the past two years, the shares have swung an average of 16.9% the day after earnings, regardless of direction. This time around, the options market is pricing in a much higher 28.6% swing for Thursday's trading.

Lastly, short interest is on the rise, up 7.7% in the last two reporting periods. The 11.97 million shares sold short account for a healthy 21% of the GameStop stock's available float.

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners