GameStop Stock Pops Following Billion-Dollar Equity Offering

GME is up over 1,000% in 2021

Deputy Editor
Jun 22, 2021 at 11:14 AM
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The shares of GameStop Corp. (NYSE:GME) are up 7%, last seen trading at $214.20, after the video game retailer announced the completion of an at-the-market equity offering. The retail company sold five million common shares, raising nearly $1.13 billion in capital to put toward general corporate purposes, growth initiatives, and keeping its balance sheet strong.

The proverbial meme stock has traded above the $200 mark for the better part of a month, after facing pressure from the level since March. With consistent support from the 80-day moving average, GME is up 1,039.2% year-to-date.

Meanwhile, there's a heavier-than-usual preference for puts in the options pits. This is per GameStop stock's 10-day put/call volume ratio of 1.19 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 83% of readings in its 12-month range.

Short-term options traders have also been more put-biased than usual, implied by GME's Schaeffer's put/call open interest ratio (SOIR) of 4.11, which stands in the 84th percentile of readings from the past year. 

That being said, now looks like a good opportunity to weigh in on the security's next move with options. GameStop stock is seeing attractively priced premiums at the moment, per its Schaeffer's Volatility Index (SVI) of 135%, which sits in the low 13th percentile of its annual range. 

 

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