GME - GameStop's Volatile Market: Exploring Speculative Trading Tactics

2024-06-14 12:35:37 ET

Summary

• GameStop Corp. stock is highly speculative, and I don't believe fundamentals warrant a long position here.
• Market-makers understand options well and may benefit from increased GameStop activity.
• I'm considering buying ITM or ATM long-call spread positions with caution, possibly hedged, due to potential mispricing based on market demand tilting far out-of-the-money.

I don't think GameStop Corp. ( GME ) makes a lot of sense from a fundamental investing point of view. Earlier this month, I've explained why in this article . Many people are speculating on further bullish price action anyway. I can certainly understand that, if only because of the unbelievable run it went on in 2021. Also, as Sun Tzu said: “In the midst of chaos, there is also opportunity.” I'll explore the option position I'm considering....

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