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Options strategies to consider during Earnings Season
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GameStop Shares Fly 22%+, June 21 Options Jump

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Kevin Travers joined discussion · Jun 11 14:31
$GameStop(GME.US)$ shares flew 22% Tuesday afternoon, after a two-session pullback surrounding the firm's early earnings release and Keith "Roaring Kitty" Gill's livestream Friday. Following is 12% intraday climb, options on the stock blew up to the top seven positions in the entire U.S. market ranked by options trading volume.
GameStop Shares Fly 22%+, June 21 Options Jump
Earlier in the day, the stock continued to fall down about 12% from Friday and nearly 50% from Thursday night, when Gill announced he would hold a live stream. Based on moomoo data, the stock saw a couple of days of overall outflow, but Tuesday saw a net buy of 43 million shares.
GameStop Shares Fly 22%+, June 21 Options Jump
For the past couple of trading sessions, the stock declined during net outflows: before Gill could go live, GameStop announced its earnings report four days early, with a disappointing quarter and a 75 million share sale that drove down the price. Gill went live and showed his positions unrealized Gill was down $250M.
Within the blazing options chain, one contract stood out: Gill's own supposed call contract.
The call made up a third of all open interest due to expire on June 21. The contract traded 14k times Tuesday, with an open interest of 166k, and gives holders the right to purchase GME stock at $20/share for the current average price of about $9.85.
GameStop Shares Fly 22%+, June 21 Options Jump
Last week, Gill famously posted that his position was valued at $175M. His trades immediately whipped retail traders into a fervor, sending the stock price of GME higher to a top of $64/share. Based on pricing data in the screenshot, his trades likely occurred sometime between May 17th and May 30th.
GameStop Shares Fly 22%+, June 21 Options Jump
Disclaimer: Options trading entails significant risk and is not appropriate for all customers. It is important that investors readCharacteristics and Risks of Standardized Optionsbefore engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
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