GME has announced the date of it’s four for one split. Currently had a small pop in after hours. This thread is to track the play into and after the split.
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This play is currently in an uptrend on the 30m timeframe. Enabling 5m timeframe alerts to guide first entries.
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CNBC article posted after hours when the news dropped:
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This is a really weak pop in my opinion. So far, it’s up less than 10% in AH. The 7-1 split news back in April had more pop than this. I’ll be playing puts when I feel it’s reached it’s peak, which I think could be end of this week or next week.
Also, I would like if someone who is more knowledgeable with stock splits give their input on how an underlying trades during a stock split so we can trade it appropriately.
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So basically if they own a share on 18th they get the dividend of 3 additional shares. So there should be theoretically a run up to the 18th if this gets traction then a subsequent sell off there after that you never know about because of these GME guys. Frankly they have managed to keep this over a hundred for a long time and I’d assume they go goofy over this.
But the strikes to look at would be July 22nd if I understand the split right ?
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In theory there could be a run-up, but be careful and take a close look at the OI on the weekly option chains and be sure to pick a strike with plenty of existing OI which should give you the tightest spread.
I don’t see any info on https://www.theocc.com/ yet, it will likely be filed tomorrow. My guess is that option contract strikes will simply be divided by 4. Otherwise they will have to move all existing to non-standard and create new option chains. I’ll try to keep an eye and post info when they release a memo.
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In this case you’d be trading liquidity of the monthlies (July 15s) for the extra 5 days people might be piling in at last minute, so its something to consider.
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Part of the appeal of this split seems to be that “lenders have to return shares to receive the share dividend”. And bad things will happen to them if they do not do so. Do shorts have to (or would at least would want to) close their positions before the dividend is paid out?
Bad things are also supposed to happen to naked shorts. If they are there in sizeable numbers, this allegedly could lead to major price spikes.
Any insights into the short-related dynamics would be greatly appreciated!
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I’d think a majority of retail would be buying contracts to capitalize on the fact of the runs not necessarily to exercise. I mean I have zero intentions of holding anything last the dividend split date. So the monthlies don’t mean a lot to me. The IV is always jacked on GME so with upward movement the gains should be good.
I’ve heard so much about landers will have to buy back this if this happens…BBIG just had its TYDE dividend and both tickers going into the gulag…i dont think shorts or landers’ll have to do shit. They will find a way to spread whatever buy back they have to do.
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Looking at GME, my feeling is that there are bigger players than retail involved to have so many spikes over the last one year and still sustain the price over 100. I feel that this is periodically pumped and then retail is milked on the premiums. With this news I think maybe we see a pump running into next week and a dump mid-week. However one cannot underestimate the retail sentiment attached to this stock. There maybe people over at Gamestonk community saving up for this day and might continue buying into this through 18th. On the flip side, bigger institutions shorting this may benefit from nipping this in the bud by Friday killing the sentiment.
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This is an interesting hypothesis. I always tought retail had no control over the pumps that occured after the first gamma squeeze. Retail behavior doesnt change. Each small runs, you have bozos buying contracts OTM thinking GME going to tirvana and they get burned each time. Based on your assesment, this could be a good swing play if you get calls ITM and have a small position. Good money to be made indeed.
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Strong Confirmed Buy Alert on 15m Timeframe for GME
I took an entry off this signal just for fun. Literally one monthly 200c.
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looking back at each time gme approached $70, the first time was RC buying a few million worths and the second time was likely some hedge trying to prop it up so they could sell more calls/ short it more.
Strong Confirmed Buy Alert on 30m Timeframe for GME
Potential Buy-Side Exit Point on 30m Timeframe for GME. This is not a Sell Signal, just a suggested place where exiting or scaling out might be beneficial.
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Confirmed Sell Alert on 30m Timeframe for GME
It is rumored that GME is cutting 20% of their corporate staff per this Reddit post (thanks to @The_Ni):
https://www.reddit.com/r/wallstreetbets/comments/vtrdt5/gme_just_laid_off_20_of_corporate_staff/
and this tweet (thanks to @Kevin):
https://twitter.com/stephentotilo/status/1545137465748590593?s=20&t=K5S36dwDuL9KpxOvEaNKIg
This is just a test play so I’m not really stuck to a particular sentiment however I agree that the CFO oust is bearish, however, imo the staff cuts are bullish. Will have to see where the market takes this one.
There was a post market SELL signal that is missing that I’m going to troubleshoot.
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A Normal Sell Signal has Turned Strong on 30m Timeframe for GME. Consider Dropping Calls.
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