Former meme stock GameStop Corp (NYSE:GME) is seeing heavy call volume today. Up 8.5% at $12.92 at last glance, and without a clear catalyst, the stock's surge is likely the result of short selling, as short interest represents a hefty 22.5% of the stock's available float.
So far today, 112,000 calls have crossed the tape -- five times the amount typically seen at this point -- in comparison to 22,000 puts. The weekly 12/8 20-strike call is the most popular, where new positions are being opened.
The $12 region, home to GME's recent Nov. 13, two-year low of $11.82 has provided a floor on the charts for the past couple of days. The stock's 40-day moving average lingers above as pressure, however. On track for its fifth-straight monthly loss, GameStop stock is down 29.8% since the start of the year, and call traders appear to be taking advantage of the extended pullback.
A broader look at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows GME's 10-day call/put volume ratio of 4.11 ranks higher than 90% of readings from the past year. This points to plenty of optimism in the options pits over the past two weeks as well.
Before you make your next trade, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.
Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.
They believe these five stocks are the five best companies for investors to buy now...
See The Five Stocks Here
Thinking about investing in Meta, Roblox, or Unity? Click the link to learn what streetwise investors need to know about the metaverse and public markets before making an investment.
Get This Free Report
Like this article? Share it with a colleague.
Link copied to clipboard.
