GameStop is a store that sells video games and other electronics. Some people who have a lot of money think the price of GameStop's stock will go down, so they are buying options to sell the stock at a higher price later. Other people think the price will go up, so they are also buying options to buy the stock at a lower price later. They all do this to make money from the difference between the prices they buy and sell the stock. Read from source...
- GameStop's recent performance: 2.05% increase in price, neutral RSI, next earnings report in 40 days
- Options history: 19 trades, 31% bullish, 47% bearish, 4 puts, 15 calls, big players targeting $15.0 to $40.0 price window
Based on the article, I recommend the following investment strategies for GameStop:
1. Bullish trades:
a. Buy GameStop call options with a strike price around $20 or lower, with a 30-day expiration date.
b. Set a stop loss at $15 or lower to minimize potential losses.
c. Target a profit of $25 or higher, depending on the option's premium and risk appetite.
d. Consider using a protective put strategy by selling a put option with a strike price around $15 or lower, to limit downside risk.
2. Bearish trades:
a. Sell GameStop put options with a strike price around $20 or higher, with a 30-day expiration date.
b. Set a target price at $15 or lower, depending on the option's premium and risk appetite.
c. Consider using a protective call strategy by buying a call option with a strike price around $15 or higher, to limit upside risk.
Risks:
- The article's data may not reflect the most recent market conditions and may not be accurate or complete.
- GameStop's stock price may not follow the expected trend, and options prices may move differently than the underlying stock.
- Options trading involves higher risks and potential rewards than traditional stock trading, and may not be suitable for all investors.