With the declining business model and the shift to online "downloads" GME is fairing poorly. R/R is unfavorable but nimble in comparison to the balance sheet. Down side potential of ~30% Upside (S/L) set at midpoint, or 15% retrace.
I originally filled this for a .94 credit, and I'm out today for a .47 debit (50% max profit/$47 contract).
Sorry I didn't get to post this before NY close ... . Filled for a $94 credit. I usually like to see a $100/contract out of these setups, but I figured it was close enough ... . I'm looking for price to stay between my short strikes between now and expiration and for volatility to contract post-earnings announcement. Post-announcement, price is down about $2...
With the VIX at sub-15 levels, premium selling plays are hard to come by, so I can either resort to low volatility strategies (calendars, diagonals), look to go "long volatility," or search for "diamonds in the ruff" for premium selling. Since I not a rabid low vol strategy player, I'm going to look at seeking out what limited short volatility plays there are or...
The bid/ask spreads are REALLY wide on this one. Could try for a .10 limit or higher. I WANT more because of the amt of time one has to wait... So, likely won't do this trade BUT it might be good as a learning experience.
Having announced earnings about two weeks ago, IVR/IV in GME remains high (70/55). The standard setup -- the short strangle: Jan 22 27.5/38.5 short strangle POP%: 71% Max Profit: $113/contract BPE: ~$333/contract Break Evens: 26.37/39.63 Look to take it off at 50% max profit and move on ... .
If GME opens above 41.73 consider using the Retest Gap Strategy. To get a free and complete trading education go to www.RealLifeTrading.com
GME expected to open at 36.25 for a Perfect Gap N Go. To learn to trade this strategy for free, go to www.RealLifeTrading.com
GME Expecting opening around 39.31 which will be a retest gap. Wait about 30 minutes then look for bearish break off of 10 or 20 ema. Be careful of 39.37 support resistance zone.
Positive MACD and RSI. Just made a big jump up on high volume. Take profit at Fibonacci extension
Industry is doomed for bankruptcy with a nice pattern setting up
Stock came from $16 to almost $58 in year and a half but was sold off on bad earnings results almost 2/3 of it is initial move up. In such a strong tape I think it looks ready for move higher, as it found support at $33 and have built higher highs with consolidation support at $35-$36. It broke downtrend line to the upside with strong, green candle and building...