I wrote over the weekend about how something may be afoot with GME. It is already an oversized position for me and today I added some August $13 calls at $2.50. Bit of a gamble, I know.
But riddle me this. What is the short position on GME? According to YHOO, it is 44 million shares, or almost 52% of the float. It is positioned for an epic short squeeze on any sort of positive news (it was up 8% today).
Now we know they present tomorrow at a conference. We also know they have traded up past two days on above average volume. We also know that CEO of 3 months stepped aside in May. There is some serious smoke.
Then today we also had this drop on us:
Sycamore Partners said to be interested in GameStop
Now, it is just a rumor right now. But if confirmed... and GME will not likely be able to remain quiet, the stock could surge. They are trading at 15 and change right now, but they were pushing $20 around the start of the year. I am just spitballing, but GME in an auction has to be worth $22 to $25 a share.
Stay tuned for the river.
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