Game Stop (GME) is trading 25.80 up .38 today.? The company, which has been under pressure due to weak holiday sales, recently received some positive commentary from an analyst pointing toward the stock possibly being oversold.
While the company has not announced when it will release earnings yet, traders are piling into the March contract.? Most notably, a trader ?backed up the truck? on the Mar 30 calls.? Almost 12,000 have traded, mostly buys.? The trader paid up to .30 at least 10,000 times running the IV up from 43% to 47% on that strike.? Traders are also buying the March 27 calls where over 1,000 have traded.
The buying up of the 30 calls has thrown the IV skew out of whack in March where the 30 and 31 calls are now trading at a significant IV premium to the 28 and 29 calls.? One way to piggyback on this trader would be to buy the 27 or 28 calls and sell the 30?s as a call spread.
Of course, the trader could be buying these calls as protection against a short position, so piggyback at your own risk.