GameStop Stock Sees Pre-Earnings Options Surge

Options traders are firmly bullish on GME

Deputy Editor
Dec 5, 2022 at 1:17 PM
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GameStop Corp (NYSE:GME) has seen a surge of options activity ahead of its third-quarter earnings report, which is due out after the close on Wednesday, Dec. 7. In fact, GME landed on Schaeffer's Senior Quantitative Analyst Rocky White's list of S&P 400 names with the most options volume in the past 10 days. In that time period, 990,716 calls and 399,658 puts exchanged hands. The most popular contract during this time was the weekly 12/2 30-strike call, followed by the 28-strike call in the same weekly series. It's also worth noting that the top 10 most active positions were calls. 


This bullish sentiment isn't unusual for the meme stock, per GME's 50-day call/put volume ratio of 2.69 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits in the 98th percentile of its 12-month range. 

Plus, the stock staged positive post-earnings reactions after its last three reports, including a 10.4% pop in June. However, over the last two years, the eight next-day sessions have been positive as many times as they have been negative. This time, the options pits are pricing in a next-session swing of 13.4%, which is slightly lower than the 14% move GME has averaged over the past two years. 

GameStop stock is down 6.8% at $25.63 at last glance, though the reason for this negative price action was not immediately clear. For the most part, the shares have been middling between the $24 and $28 levels, though pressure at the 80-day moving average appears to be emerging as a potential ceiling. 

GME Dec5


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