GME Options Volume Increases Over the Last Two Weeks
shares of GameStop Corp. (NYSE: GME) Continuing to languish after Monday’s rally attempt, the stock fell slightly this afternoon, down 0.5% at $26.88. GameStop’s stock rose more than 24% to his October 31 session high, after which the stock fell at $35 levels to close at $28.31. The GME has a deficit of more than 51% year-to-date, but the $27 area appears to be coming back as a ceiling.
In the midst of all this volatility, the GME has seen increased interest in options pits. The stock ranks #1 on Shaffer’s Senior Quantitative Analyst Rocky White’s list of S&P 400 (SP400) stocks with the highest weekly options volume in the past two weeks. I went in. Over the past two weeks he has traded 1,625,910 calls and his 448,301 puts, with the most popular contract being his 30 strike calls on 10/28 of the week.
More broadly, this trend towards bullish betting is nothing new. This is based on his 50-day call/put volume ratio of 2.60 for his GME on the International Stock Exchange (ISE), Chicago Board Options Exchange (CBOE) and NASDAQ OMX PHLX (PHLX). This ratio ranks in the 89th percentile of the annual range, indicating that calls in the last 10 weeks are prioritized.
For those looking to join in the fun, now may be the ideal time. GameStop’s 98% Shafer’s Volatility Index (SVI) is in the 22nd percentile of its annual range, suggesting options traders are currently setting low volatility expectations.Furthermore, the Schaeffer Volatility Scorecard (SVS) A score of 86 out of 100 means that the security tends to exceed the aforementioned volatility expectations.
Shorting remains well under control, with short interest rates up 8.8% over the past two periods. His 53.88 million shares sold short represent 21% of the stock’s available float, or nearly two weeks of hoarding.