How trader is playing GameStop

optionMONSTER

An interesting put spread tops the options trade in GameStop.

optionMONSTER systems show that a trader bought 2,750 October 50 puts for $1.60, above the listed ask price at the time, against open interest of 3,395. Seconds later, the trader sold 2,750 November 50 puts for $2.74 in volume above that strike's open interest of just 837, so that was a new opening position.

This appears to be a roll of a short-put position . The trader is left short those November puts as a continued bet that GME will hold above $50. Below that level, he or she will face the obligation to buy shares. (See our Education section)

GME is up fractionally to $51.38 this afternoon. The video-game retailer has been in a relatively tight range for the last month between $49 and $53, after hitting an intraday high of $56.08 on Aug. 22. 

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