TLDR
- GameStop stock jumped 5.07% to $23.63 Thursday despite no company announcements
- Call options volume hit 233,000 contracts, 100,000 above normal daily average
- Put/call ratio sank to 0.1, lowest reading since July 21
- Traders concentrated on $23.50 and $24 strikes expiring Friday
- Q3 earnings forecast at $0.20 per share versus $0.06 last year
GameStop stock rose 5.07% Thursday, closing at $23.63 in a rally fueled entirely by options market activity. No news or company updates emerged to explain the price movement.
Call options volume reached 233,000 contracts by the closing bell. That topped the stock’s typical daily volume by approximately 100,000 contracts over the past 20 trading sessions.
The put/call ratio crashed to 0.1, the lowest reading since July 21. This extreme ratio means call options swamped puts by a margin of 10 to 1.
Such a low ratio indicates traders are making strong bullish bets. The options market is clearly positioned for more upside in GameStop shares.
Short-Term Strikes Draw Heavy Interest
Trading focused heavily on $23.50 and $24 strike prices. Both contract sets expire this Friday.
The concentration on near-term expirations shows traders expect gains within days. When call volume spikes like this, it often pushes the stock higher.
Market makers buy shares to hedge their options positions. This hedging activity creates buying pressure that can drive prices up.
Implied volatility climbed to 49.54 during Thursday’s session. That level sits in the lower range of the past year’s volatility readings.
The volatility metric suggests daily price swings of roughly $0.71. The RSI indicator stands at 35.37, approaching oversold territory.
Recent Earnings Beat Expectations
GameStop reported second quarter results in September. The company posted earnings per share of $0.25, beating the $0.19 estimate.
Revenue totaled $972.2 million, surpassing Wall Street’s $900 million forecast. Those results are over a month old now.
No fresh financial data or corporate announcements surfaced Thursday. The rally stemmed purely from options trading dynamics.
Wall Street Eyes Q3 Results
Analysts project third quarter earnings of $0.20 per share. That compares to just $0.06 in the year-ago quarter.
The 20-day moving average sits at $24.63, above the current stock price. That creates a potential resistance level for further gains.
GameStop’s market cap stands at $10.26 billion. The company shows a current ratio of 11.37, indicating strong liquidity.
Institutional investors hold 39.99% of shares. Insiders own 10.52% of the company.
The stock’s beta of 2.37 means it moves more than twice as much as the broader market. Thursday’s options activity included 74,000 contracts in separate reporting.
Call volume dominated put volume throughout the session. The options market positioning suggests traders expect continued upward movement in GameStop stock over the coming days.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
