GameStop trading activity looks eerily similar to the run-up of its Q2 frenzy
With a 6.3% spike on Tuesday, GameStop booked at its highest close since June 6 at $31.26.
That’s the day when the stock was halted for volatility (to the upside!) after Keith Gill, aka Roaring Kitty, announced that he’d be hosting a livestream the following day to discuss why he still liked the stock.
It proved to be the high-water mark for the echo boom in the GameStop meme mania 2.0, with the stock slumping almost 60% from that time until it troughed on September 19.
Trading volumes in the actual stock right now are nothing too spectacular — but what stands out is the action in the options market. It’s one way, with hefty demand for call options, and evidence of a whale who’s recently built a significant position in bullish options that will be in the money if the embattled brick-and-mortar retailer gets all the way to $125. There’s little appetite for options that benefit from the stock falling.
The put-to-call ratio was just 0.133 to open the week, and sank even lower to 0.127 on Tuesday. We haven’t had the put-to-call ratio below 0.135 — in other words, nearly eight bullish options trading for every bearish one that’s changing hands — in back-to-back sessions since late April.
That coincides with the time when the last lawsuit that Gill was facing surrounding the original 2021 meme-stock mania was dismissed, and he began accumulating a huge call-options position in GameStop prior to his return to social media on May 12.
It proved to be the high-water mark for the echo boom in the GameStop meme mania 2.0, with the stock slumping almost 60% from that time until it troughed on September 19.
Trading volumes in the actual stock right now are nothing too spectacular — but what stands out is the action in the options market. It’s one way, with hefty demand for call options, and evidence of a whale who’s recently built a significant position in bullish options that will be in the money if the embattled brick-and-mortar retailer gets all the way to $125. There’s little appetite for options that benefit from the stock falling.
The put-to-call ratio was just 0.133 to open the week, and sank even lower to 0.127 on Tuesday. We haven’t had the put-to-call ratio below 0.135 — in other words, nearly eight bullish options trading for every bearish one that’s changing hands — in back-to-back sessions since late April.
That coincides with the time when the last lawsuit that Gill was facing surrounding the original 2021 meme-stock mania was dismissed, and he began accumulating a huge call-options position in GameStop prior to his return to social media on May 12.
