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Rap Sheet

Author:

Jester Debunker

Subject:

Off Topic

Date:

02/01/16 at 9:54 AM CST

 

 

READ: 5

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Sentiment:

Neutral

GME

I'm still seeking to play GME for quick long side trades. Most recently I had sold puts for $0.90 at EOY expecting a short covering profit taking bump at the start of this year, which happened, then I sold $27 puts for $0.70 and it dropped with guidance and the market. Last week I sold $26.5 calls on that acquired position for $0.30 which expired, and this morning I closed out the shares at just over $26.70, so effectively I made back that $0.70. If it drops again to near $26 I'll probably sell short term $26 or $26.5 puts again. Essentially, I'm thinking the short interest is just so huge that there's bound to be frequent profit taking spikes which will keep volatility and therefore the price of options high.

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