Unusual Option Move: GameStop Strangle (GME)

Posted in Options 
June 13th, 2008

GameStop Corp. (NYSE: GME) is typically a stock that isn’t highly active in stock options.  An options strangle trade, holding different options strike prices at the same maturity date, was made in GameStop today.   Below you can see the trades with the comparison to the open interest:

OPTION CONTRACT        Volume  OpInt
JAN09-$55 CALLS           4,581    4,895
JAN09-$45 CALLS           4,198    5,165

Based upon the open interest being only a bit above each of the trading volume today, it is very possible that this is a closing-out trade.  If not, then someone has made a bet that GameStop won’t fall too far below $45.00 nor rise too much above $55.00 before January 16, 2009 when these options are set to expire.

Jon Ogg
June 13, 2008

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