Investors in GameStop Corp (GME) have new options contracts expiring on September 19th available as of today. The $18.00 put contract has a current bid of 50 cents, allowing sellers to purchase shares at $18.00 while effectively lowering their cost basis to $17.50. This represents a 21% discount from GME’s current trading price of $22.73, with an 82% likelihood that the put will expire worthless, offering a potential 2.78% return on cash commitment, or 14.08% annualized.
On the call side, the $26.00 strike price call contract is currently bidding at $1.56. Investors purchasing at $22.73 could yield a total return of 21.25% if the stock is called away at expiration. This strike is approximately 14% above the current price, with a 58% chance of expiring worthless, allowing investors to retain both shares and premiums, equating to a 6.86% return boost, or 34.79% annualized.
The implied volatility for the put is 71% and for the call is 75%, with actual trailing twelve-month volatility calculated at 68% based on the last 250 trading days.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
