GameStop Set to Join Nvidia, Tesla in Most Active Stock Options: Options Chatter
GameStop is in the running to join $NVIDIA (NVDA.US)$ and $Tesla (TSLA.US)$ in the most active stock options as shares of the video game retailer retailer tumbled after the company announced a $1.75 billion offering of convertible notes.
Shares of $GameStop (GME.US)$ tanked 20% to $23 Thursday, on course for their lowest level in more than two months. That added to Wednesday’s 5.3% decline after the company reported a 17% plunge in net sales in the first quarter, disappointing Wall Street.
The slump pushed many of GameStop’s call options out of the money, triggering an exodus from contracts expiring tomorrow. More than 546,000 put and call options changed hands as of 11:15 a.m. in New York. That’s higher than the 20-day average volume of 346,429 contracts.
GameStop plans to use the net proceeds from the convertible notes officer for general corporate purposes, including investments in $Bitcoin (BTC.CC)$, according to its press release . The convertible bond due in 2032 is being marketed at a 35% to 40% conversion premium, Bloomberg reported, citing a person familiar with the offering.
The heaviest trading was seen in call options that give the holder the right to buy GameStop shares at $24 tomorrow, with volume reaching 14,090 more than 15X the open interest.
Just two minutes after the market opened, an active buyer paid a $526,030 premium for put options that give their holder the right to sell 225,000 GameStop shares at $25 each by tomorrow. That’s the biggest block trade for that stock option posted so far.
The company has purchased 4,710 Bitcoins between May 3 and June 10, it said in its quarterly filing with the Securities and Exchange Commission. Those holdings are estimated to be worth $506 million, according to bitcointreasuries.net.
Share your thoughts on GameStop in the comments section. Do you expect the shares to keep sliding, or can its Bitcoin holdings push the stock valuation higher? Let your voice be heard by voting below. And if you want to read more options columns like this one on IonQ or this one on Coinbase, follow me here.
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Luzi Ann Santos
Moomoo Senior News and Community Manager
Former editor at Bloomberg, ex-commentary editor at Lazard. Posts aren’t investment advice. Views are just mine.
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