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
facebook twitter linkedin

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. 


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!



Special Offers from Schaeffer's Trading Partners