GameStop Calls Fly Off the Shelves After Website Reboot

Call volume is pacing for a new annual high

by Lillian Currens

Published on Aug 29, 2019 at 3:12 PM

A website reboot has the shares of GameStop Corp. (NYSE:GME) eyeing their highest close this month, up 6.2% at $4.12, at last glance. The video game retailer said the change was inspired by feedback from their customers, and urged people to explore their newly redesigned page, GameStop.com, which will offer a new in-store pickup feature and easy discoverability. 

The stock has been on the mend since a post-earnings bear gap led to a record low  of $3.15 in mid-August. The stock has recently found its footing atop its 20-day moving average, which formerly acted as pressure on the charts. What's more, GameStop's 40-day trendline could emerge as an area of support, too, should today's gains hold, with the equity eyeing its first close north of here in seven months.

GME Chart Aug 29

This positive price action has brought plenty of call buyers to the table. The 31,341 calls traded so far amounts to 10 times the average intraday amount, and is pacing for a new annual high. Most of this activity is taking place at the September 4 call, where it looks like a large number of these contracts are being bought to open, suggesting that these traders are expecting the stock to extend its lead atop the $4 region through expiration at the close on Friday, Sept. 20.

While short interest unwound over the last two reporting periods, down 13.2% to 58.09 million shares, these pessimistic positions still represent a whopping 59% of the stock's available float, or nine days' worth of pent-up buying power at GME's average pace. GameStop's recent rebound could get an assist, should more traders cover their bearish bets.


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