GameStop Soars Higher Wednesday
By More Than 60%!

And Still Continues Today – Pre-market More Than 15%!


Stock Options Made Easy Members Up 748% - More Expected Today!

How High Will The Stock Go?

by Ian Harvey
January 14, 2021

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Shares of video game retailer GameStop continued its incredible run on Wednesday, climbing as much as 93.7% in morning trading. By end of trading, shares had settled slightly and were now "only" up 57.64%.

Stock Options Made Easy “Cut-to-the-Chase”Members Are Now Up 748% Potential Profit!

How high will the stock trade? 


GameStop Corp. (NYSE:GME)

Prelude…..

GME, operating as an omnichannel video game retailer, is riding a confluence of good news higher.

GME's shares rose approximately 17% in trading Monday – then jumped 93.7% in morning trading yesterday, still up 63% at 1.00pm; finally closing up 57.64%.

This morning, pre-market trading has seen GME shares up more than 18% by 8.00am.

There are several reasons that GME stock is soaring…..

1. On Monday GME announced holiday sales - holiday quarter sales rose 4.8% on a comparable-store basis and e-commerce sales jumped 308%. Management didn't give guidance for the full quarter, but did say it expected comparable-store sales and profits to rise in the fourth quarter of fiscal 2020.

2. An apparent short squeeze, with short-sellers buying up shares in massive quantities to cover the liquidation of their positions, pushed the stock price upwards on Monday.

 Short interest in GameStop was noted as being a significant percentage of its total float at the start of this week, and yesterday's explosive stock market movement seems to be a short-seller response to an announced agreement with activist investor RC Ventures.

While GameStop has 69.8 million shares outstanding, short interest on the stock rose to 71.2 million shares on Dec. 31 from a previous 68.1 million shares, according to FactSet data.

3. Also on Monday, GameStop announced three new directors with e-commerce and technology experience. This was part of an agreement with RC Ventures, the company's largest stockholder, to expand the board of directors from 10 members to 13.

In a press release, GameStop refers to the appointments as a "refreshment" of the board, asserting that the new appointees "bring deep expertise in e-commerce, online marketing, finance and strategic planning" to its operations. Board chair Kathy Vrabeck added that these skills should "help us accelerate our transformation plans and fully capture the significant growth opportunities ahead for GameStop."

YOU NEED TO BE IN TO PROFIT!

Analysts Input…..

Analysts at Baird echoed Vrabeck's statements, noting that the directors now include three individuals with previous experience at online pet supply seller Chewy, which has seen outstanding performance during recent quarters, based on the strong success of its e-commerce model.

Baird said that although pet food and video games are very different markets, GameStop as a platform should benefit from the new directors' e-commerce background nevertheless.

While noting that shorts definitely were a part of the buying binge, Ihor Dusaniwsky — the head of predictive analytics at financial technology and analytics firm S3 Partners, which specializes in analyzing data on short selling — said he doesn’t agree that GameStop’s price surge was the result of a squeeze.

“GME’s board shake-up and stronger holiday sales is causing a long-buying tsunami, which is the primary factor for the price move,” Dusaniwsky said in emailed comments. “While I agree that we are seeing some shorts squeezed out of their positions due to massive mark-to-market losses today, this is much like the chicken-and-egg question – did long buying lead to short covering\squeeze or short covering\squeeze lead to long buying?”

Dusaniwsky believes it’s the former.

“We will not be seeing a massive drop in shares shorted over the next few days, more like a 10%-20% drop which would mean 7 to 14 million of shares covered, which is nowhere near the almost 70 million shares traded this morning,” the analyst said. “Long buyers are the primary force driving GME’s stock price up.”

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Where We Stand…..

Stock Options Made Easy “Cut-to-the-Chase”Members Are Now Up 748% Potential Profit!

They executed a CALL OPTIONS trade on Gamestop on Tuesday, December 22, 2020.

READ the details HERE.

IF YOU ARE INTERESTED IN WEEKLY OPTIONS - CLICK HERE!

Now.....

How High Will Gamestop Go Today?

Should “Cut-to-the-Chase” Members Sell or Hold?

Is There Still An Opportunity To Enter The Trade and Profit?

What Other Trades Are We Anticipating?

Do You Wish To Be Part Of This Action?


Join us here at Stock Options Made Easy, and find out our trades moving forward.


AS ALWAYS THE DECISION IS YOURS!


An Important Note: That any suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.

It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented. GREED can be the undoing of a nice profit!


Best of Trading,
Ian Harvey
Director of Stock Options Made Easy


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