Trade sees little downside in GameStop
A large trader apparently believes that GameStop will hold recent gains.
optionMONSTER's tracking programs detected the sale of 4,150 July 29 puts in one print for $0.33 yesterday. This is clearly a new position, as volume was above the strike's open interest of 2,726 contracts.
Short puts lock in a price where investors must buy a stock, while letting them collect premium. Traders use the technique when they like a stock and think that the risk of a big drop is limited. (See our Education section)
GME rose 0.38 percent to $28.85 yesterday and is up 9 percent in the last week. The game retailer's last quarterly report on May 26 was bearish, and its next quarterly released is estimated for after the close on Aug. 25.
Overall option volume in the name was twice its daily average yesterday.
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