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GameStop Corp. Message Board

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  • A Yahoo! User Oct 10, 2012 1:37 PM Flag

    Why the drop today?

    Yesterday's Run-up was overextended, IMO. There was a point when we were around 23.84 where the October 24 calls were trading at 75c. I think some HF came in and bought a ton of stock and sold the calls against it. That happened at the same time as some margin calls (I speculate). We also hit major resistence - the 2012 opening price of 24.43. This is a volatile stock and if anyone is concerned with that, chances are that their position size is too large. I would expect a choppy price action ultimately in the upward direction... We had also gone up, what, 15% straight. Stocks don't move in a straight line. Gotta shake out the weak hands.

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    • Forgot to add - this stock has a beta of 1.2ish. The price action of the last few days can be interpreted as VERY strong, since it happened with the market getting hit pretty hard. The flip side is that long/short funds might liquidate some of their short positions as their long positions decrease in value (either for margin or balancing purposes)... I still like the price action, and the fundamentals on this stock are very enticing.

      • 1 Reply to A Yahoo! User
      • Thank you for the explanations. I got sick and tired of getting nowhere by diversifying so now I am all in with GME betting big on even half the boost this stock got in '07 with the last round of console launches. Hey, it can't be any stupider that putting most of mymoney on the Facebook IPO! LOL Thank god I got out of that just hours after it went public and flopped.

        Sentiment: Strong Buy

38.36-0.43(-1.11%)Mar 27 4:01 PMEDT