GameStop (GME) Option Bears Show Their Face

GameStop Corp. puts were popular on Wednesday

Dec 26, 2014 at 10:15 AM
facebook X logo linkedin

It's been a tough year for GameStop Corp. (NYSE:GME), with the shares off 31.4% to trade at $33.79. More recently, the equity has been pressured lower by its 20-day moving average -- currently located at $34.58 -- since an earnings-induced bearish gap in late November. Against this backdrop, options traders on Wednesday scooped up puts over calls at a 4-to-1 ratio, betting on the equity to continue to churn south of this trendline, and extend its negative price action into the new year.

Daily Chart of GME Since October 2014 With 20-Day Moving Average

Specifically, GME's February 35 put saw the most action in Wednesday's holiday-shortened session, and by all accounts, the majority of the 4,353 contracts traded were bought to open. Based on GME's present price, these puts are in the money. However, in order for the put buyers to profit at the close on Friday, Feb. 20 -- when back-month options expire -- GME must be sitting south of breakeven at $31.93 (strike less the volume-weighted average price of $3.07).

From a wider sentiment perspective, Wednesday's put-skewed session marked a change of pace in GameStop Corp.'s (NYSE:GME) options pits. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day call/put volume ratio of 1.31 ranks in the 69th annual percentile. Simply stated, calls have been bought to open over puts at a faster-than-usual clip in recent weeks.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI