What's Going On With GameStop Stock Ahead Of Earnings?

GameStop Corporation GME shares are trading higher Monday. The company is set to report its second-quarter financial results after Tuesday's closing bell. 

The Details:

Analysts expect GameStop to report quarterly losses of 9 cents per share on revenue of $895.67 million, according to estimates from Benzinga Pro. GameStop shares have experienced volatility surrounding earnings, historically, and Tuesday's release may also drive price movements and volume in the stock.  

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GameStop shares gained nearly 7% Friday after Roaring Kitty returned to the X social media platform and posted an image of characters from "Toy Story" with a dog’s face superimposed. Some investors are speculating that the post could be a reference to Keith Gill potentially closing his position in Chewy, Inc. CHWY. 

According to data from Unusual Whales, someone bought $2 million in GameStop call options at 11:42 a.m. ET on Friday. Roaring Kitty then tweeted at 12:00 p.m. ET, and the options trader exited the trade fully for a 35% gain. As traders look towards the upcoming earnings report, the implied move for GameStop is 14.42% which is creating a lot of premium in GameStop options. 

How To Buy GME Stock:

By now you're likely curious about how to participate in the market for GameStop – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

GME Price Action: According to Benzinga Pro, GameStop shares are up 2.68% at $24.55 at the time of publication Monday.

Read Also:

• Roaring Kitty Posts Again: What’s Going On With GameStop, AMC, Chewy Stocks?

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