GameStop Corporation (GME) shares are experiencing a surge on Monday, fueled by anticipation surrounding the company’s upcoming second-quarter earnings report. Analysts are projecting a quarterly loss of 9 cents per share on revenue of $895.67 million, according to estimates from Benzinga Pro. Historically, GameStop’s stock has shown significant volatility around earnings announcements, making Tuesday’s release a potential catalyst for price movements and increased trading volume.
Adding to the excitement, last Friday, Roaring Kitty, a prominent investor who previously played a key role in the GameStop saga, returned to the X social media platform with a post featuring characters from “Toy Story” with a superimposed dog’s face. This has led to speculation that Roaring Kitty might be closing his position in Chewy, Inc. (CHWY). Further intensifying the buzz, Unusual Whales data revealed a large $2 million purchase of GameStop call options at 11:42 a.m. ET on Friday. Coincidentally, Roaring Kitty tweeted at 12:00 p.m. ET, and the options trader exited the trade with a substantial 35% gain.
As investors eagerly await the earnings report, the implied move for GameStop’s stock is a significant 14.42%, creating a surge in premium for GameStop options. This indicates a high level of volatility and uncertainty surrounding the upcoming release.
If you’re interested in participating in the GameStop market, there are several ways to do so. Buying shares is typically done through a brokerage account. Many platforms offer fractional shares, allowing you to own portions of a stock without purchasing an entire share. This can be particularly beneficial for stocks like Berkshire Hathaway, which can cost thousands of dollars for a single share.
For those seeking to bet against GameStop, the process is more complex and requires access to an options trading platform or a broker who allows short-selling. Shorting a stock involves borrowing shares to sell and then buying them back later, hoping to profit from a decline in price. Alternatively, options trading offers the ability to buy put options or sell call options, which can also profit from a share price decline.
As of Monday, GameStop shares are up 2.68% at $24.55, reflecting the market’s anticipation surrounding the upcoming earnings report and the recent activity surrounding Roaring Kitty’s social media presence and options trading.
