GameStop Surges on NFT, Crypto Partnership Buzz

GME is up roughly 702% in the last 12 months

Deputy Editor
Jan 7, 2022 at 10:23 AM
facebook X logo linkedin


GameStop Corp. (NYSE:GME) is skyrocketing today, last seen up 10.8% at $145.20, following the company's new non-fungible token (NFT) venture. The videogame retailer plans to create an entirely new division devoted to NFTs, which will allow the purchase and trading of virtual assets. The firm is also reportedly close to securing partnerships with at least two cryptocurrency companies to develop games on blockchain and NFT technology.

Unsurprisingly, the meme stock's options pits are exploding with activity today. So far, 73,000 calls and 31,000 puts have crossed the tape, which is six times what is typically seen at this point  The most popular is the weekly 1/7 170-strike call, but new positions are also being opened at the 200-strike call from the same series. This means options traders expect GME to move higher before the market closes today. 

Now looks like a good opportunity to weigh in on the security's next move with options, given GameStop stock is seeing attractively priced premiums at the moment. This is per the stock's Schaeffer's Volatility Index (SVI) of 97%, which sits in the 6th percentile of its annual range. What's more, GME's Schaeffer's Volatility Scorecard (SVS) ranks at a high 91 out of 100. In other words, the equity has exceeded options traders' volatility expectations over the past year.

Today's price actions puts GME back above $140, after two-straight closes below that area, which hasn't happened for the security since March. Plus, GameStop stock has regained support from the 320-day moving average, after briefly slipping under this trendline. Year-over-year, the stock is up over 702%.

 

Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.


Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!

 

 
 
 


 
 

Rainmaker Ads CGI