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Beginner's Guide | Learning about 0DTE Options
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GameStop Faces Big Money With Short Calls That Could Gain From Share Slump

Luzi Ann Santos joined discussion · May 16 10:27
Whales sold a combined $11.7 million in short positions on $GameStop(GME.US)$ that could benefit if the shares slump below $20 before the contracts turn into so-called zero-day-to-expiration (0DTE) options.
As of 10:42 a.m. Thursday, nine block trades were posted, each carrying a premium of more than $1.2 million. The sellers sold a combined 9,000 contracts that give the holders the right to sell a total of 900,000 shares of GameStop at $20 each by the time the market closed tomorrow.
Source: moomoo desktop app
Source: moomoo desktop app

Big money is shorting the stock amid its meteoric rise in the first two days of the week that sent GameStop soaring almost three-fold. That party was fueled by the return of meme stock guru Keith Gill, known as "Roaring Kitty," to social platform X for the first time in three years.
Over the weekend, "Roaring Kitty" posted an image of a man leaning forward in his chair, a meme popular among gamers that signals things are starting to get serious, according to Reuters. That ignited retail investor interest, sparking the meteoric rise of GameStop shares that have been languishing below $20 after sinking from a high of more than $103 reached in early 2021.On Tuesday,
Last Tuesday, GameStop shares soared to $64.83, the highest intraday level since November 2021, before retreating. By 1:03 p.m. in New York on Thursday, shares retreated to $29.94 $down by more than half from this week's peak.
Another four block trades, with a combined premium of $4.56 million was posted on short bets that the stock could fall below $25 by tomorrow. The short calls cover 700,000 shares.
GameStop Faces Big Money With Short Calls That Could Gain From Share Slump
Despite the 23% share price slump today, seven of the 15 technical indicators tracked by moomoo are still showing that GameStop is oversold, and the trend remains bearish. Only one is leaning bullish and the rest are neutral.
About 11.9 million GameStop shares were sold short on Wednesday, down from 26.8 million on Tuesday, when the price peaked.
Source: moomoo mobile app
Source: moomoo mobile app
Leave us your comments below on why you're bullish or bearish.
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