Traders are playing GameStop for upside
Traders are looking to score big in GameStop.
optionMONSTER's tracking program shows that more than 13,500 Weekly 30.50 calls expiring on Aug. 5 were purchased for $0.57 to $0.95 yesterday. This is new positioning, as there was no open interest in the strike before the session began.
Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)
GME rose 7.86 percent to $30.19 yesterday but is down 12 percent in the last three months. The game retailer, which reported bearish results on May 26, is expected to announce its next quarterly numbers after the close on Aug. 25.
Overall option volume was 12 times greater than average in the name yesterday.
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