Yesterday this headline appeared on the Yahoo 'GME' page. Option Monster is alerting their patrons that the Smart Money is Buying the $22.50 Put & Selling the $20.00 Put for a gain of .90 per share if the stock closes at $20.00 on Friday.
We have all watched how the Smart Money moves this stock up/down at will; our problem is they will use their fancy computers, endless money & knowledge to manipulate & close this stock at $20.00 this Friday even if GME beats their earning & gives great guidance!
I sent an email to the SEC asking for their observation of GME & it's related Option Trades.
Please take a moment & read the article & then write the SEC if you feel it is warranted:
the bearish put spread we've been reading about has limited loss and limited reward. The reward beyond $20 (ie, if the price goes lower than $20) is limited by the difference in the price of the two options on the spread.
So these guys doing this spread don't make any more money if GME goes to 15 or 19 by expiry.
A lot of that buying is not only for Fridays experation it all the months up untill April, which has the most. The report tomorrow if their a little bullish that will kill the Nov. puts the safer play is further out even if they reports good a retailer is going to get killed after this horrible holiday season.
If this hits $20.00 today does that look good for tomorrow? It looks like it will and then it leaves this market open for the stock to go up with a decent set of earnings and a modest guidance.
I totally agree with you. I have written to the SEC in the past in regard to similar situations with different securities. Never received an answer.
The problem that the small retail investor has to face (realized too late) is that the "new" market is not for value investing - it is for manipulation.
If I knew then what I know now - I'd be 100% in Muni's or even CD's.
IF gme is to get where it belongs, or at least somewhere near it we will need a generalized market rally.
I've been following this stock for weeks and it seems to always have followed the market pretty close. Lately, the past week its been running a different pattern. Anyone else observed this too???