GameStop earnings reports: Increase in call options gives hope for expected price increase

GameStop earnings reports: Increase in call options gives hope for expected price increase

According to a report by www.wallstreet-online.de, call options on the company are seeing increased trading ahead of GameStop's upcoming earnings announcement on December 6th. Options with exercise prices that are above the current share price are particularly interesting, which indicates an expected strong price increase. In particular, the call options expiring on December 8th with strike prices of $20, $22 and $22.50 are popular with investors. To be profitable, GameStop shares would have to increase by at least 40 percent.

Increased demand for call options with high strike prices suggests high anticipation for GameStop's earnings announcements. If actual earnings exceed expectations, this could cause the stock to rise further as investor confidence is boosted. On the other hand, this high expectation also carries the risk of disappointment if earnings fall short of expectations. This could lead to a sudden price drop.

Additionally, there is a possibility that increased demand for call options could push GameStop's stock price higher in the short term as traders are forced to buy the stock to exercise their options. This could lead to a temporary price rally. In the long term, however, a lot depends on the actual earnings announcements and whether they can meet high expectations.