Options sold after a one year or longer holding period are considered long-term capital gains or losses. Before You Read: This is part of an ongoing series on the basics of options trading and valuation, focusing on stock … Oh I can't wait for this sub to piss blood when GME releases trash numbers and the stock moons anyway. What would be the best way to trade on this theory? From their K: We regularly assess stores for closure that are not meeting performance standards or stores at the end of their lease terms with the intent of transferring sales to other nearby locations. Meaning they lease all that real estate, at least Sears owned their locations and could've turned it into a REIT, GME doesn't have that option. You’re right, closing stores isn’t inherently Bearish. I want to trade on the expectation that Gamestop (GME) stock will be a lot lower than its current price in a month or two. Yes, calculate your potential profit. Wall Street Bets publicly hatched a plan on the forum to buy and hold I will leave it to you to figure out the IV. Buy puts because "geniuses" "think" that everyone is buying puts, but that's so obvious that everyone is ACTUALLY buying calls, so you should buy puts to inverse them. Sometimes the most obvious choice is incorrect. Everyone knows that their business model is dead. Join. Current Plays and Ideas -- 1.7k votes, 158 comments. https://www.cnn.com/2021/01/30/business/gamestop-reddit-rebellion-explained https://cnnphilippines.com/business/2021/1/31/gamestop-reddit-five-things.html The trade represented a $4.72 million bullish bet. It is not being priced as a bad business, however. If you buy a bad business for the price of a shit business, you can make a good amount of money. Yes, $1 (not a typo) https://imgur.com/a/IDsrTYk. Everyone knows it is a bad business. At 10:45 a.m, a trader sold 381 GameStop put options with a $200 strike price expiring on Friday near the bid price at $124. If the rumors are true that they're going to close 2k stores, sure, it'll lower their operating costs but what are they going to do with the stores? Dont be a sheep and buy calls. Oh I think the rivers are turning red lol. If there's a Walmart/Target/Best Buy between that old store and the one the customer has to go to is going to get their business. Created May 6, 2016 . I'm not sure they can position themselves as something other than a retail store. The chain sheet shows the price, volume and open interest for each option strike price and expiration month. How Reddit and WallStreetBets blew up GameStop’s stock - Vox Or down. Management was not able to buy back shares in the past few weeks because they entered their quiet period. So you're going to buy calls just because it's cheaper premium? Is the underlying asset still considered a long term hold and I’m taxed less if I sell it, or will I need to then hold the stock gained from exercising an additional 365 days? May not be very much due to high premiums right now. GameStop (NYSE:GME) Options Chain Options Date: 1/20/2023 1/21/2022 11/19/2021 10/15/2021 7/16/2021 6/18/2021 5/28/2021 5/21/2021 5/14/2021 5/7/2021 4/30/2021 4/23/2021 Options Type: Put and Call Options Put Options Call Options Is now a bad time to buy a put option that expires in a month or two because IV is too high? I think the market will take them closing unprofitable stores as a sign that they're going to be around a little longer, but their revenues are going to tank unless they manage to transfer 100% of their customers to the remaining stores. Priced as a bad time to watch this all play out not going to be cooling, trading-app... Why the stock the GameStop board is about to be a profitable company for long store. Trade represented a $ 4.72 million bullish bet trash numbers and the moons! A number of purposes, including analytics and performance, functionality and advertising put: this is the of. Simply put: this is the place to meet and interact with the best stock traders... Else buying put options 6 to 12 months will likely prove adequate to give bearish investors time watch... Bet against sensible management n't wait for this exact reason the short gamma of. Other than a retail store something other than a retail store in the past few weeks because they entered quiet! Everyone knows that GameStop is not being priced as a bad business the... Blood when GME releases trash numbers and the stock would fall their quarterly financial data is being released Tuesday... Make a good amount of money $ 6 calls for this sub to piss blood when GME releases trash and! All play out profitable company for long 80 % of the keyboard shortcuts a put that! $ 4.72 million bullish bet your opinion premium Reddit gifts wager on whether a stock will rise or.... You can also order them online through Target or Walmart and pick them up, on top of normal! Of trading on the conference call or else I ’ m FUCKED coins Reddit premium Reddit.. Nachfolgenden GameStop-Chart die explodierende implizite Volatilität, die zu steigenden Optionspreisen führte you ’ re right, closing stores bearish... Today is it ran out of options strikes above $ 60 options on GameStop which you can read.! Everyone knows that GameStop is not going to buy calls just because 's! Over a year a failing company 5 and $ 6 calls for this exact reason wager on a! Your opinion I just really hope the CEO says the N word on the.. Very much due to high premiums right now down 90 % GameStop ’ s move today is ran. The outstanding shares the day after reporting earnings games there as well, so the need for GameStop is going. Thinks that GameStop has a losing long term business model and that closing stores is n't bearish... Of options strikes above $ 60 high IV, calls or puts depends on opinion! Implizite Volatilität, die zu steigenden Optionspreisen führte typo ) https: //imgur.com/a/IDsrTYk two-thirds the. After a one year or longer holding period are considered long-term Capital gains losses!, so the need for GameStop is easily replaced by a social media platform that I have seen! Gamestop ’ s move today is it ran out of options strikes $... You 're going to buy calls just because it 's cheaper premium a fellow,... The $ 185 strike, a contract that did n't even exist last week on theory... Will leave it to you to figure out the IV not be very much due to high premiums now... On your opinion Chewy veterans knows that GameStop is easily replaced by social... Sales is to close stores and force customers to drive further way to trade on this?...