BY LICIA LESLIE
June 7, 2024
Hi Shoppers,
Gamestop (Ticker: GME) has traded to the top and beyond my pitchfork so I had to add a new one.
Check it out:
The red median line comes in at $50.31 which could be some resistance, but probably not as $GME is now trading over $54 after hours as I am writing this.
From there the next level of the pitchfork lines up perfectly with the previous high at $64.60.
If the stock goes just absolutely insane, the top of the pitchfork comes in at $77.87.
Looking at the options … they are insanely priced.
I recommend buying call verticals.
That is buy the at the money call and sell an out of the money call at or near the high you think GME will trade.
These out the money calls are ridiculously expensive.
This lessens your dollars at risk and you still take advantage of the move higher.
For example Jun21 expiration:
The 47/60 call vertical is $2.35 – $3.00.
The stock is now trading ten dollars higher, but you get the idea.
Buy the at the money call and sell the out of the call strike where you think the high of the stock will trade.
Good luck out there, it’s pretty crazy and thank you Roaring Kitty!
Trade Review
The $GME spread I recommended for two bucks went out at $5.00 and the stock is still trading higher.
Thanks for Reading … See You Next Tuesday,
Licia Leslie
Licia Leslie
Head of Technical Analysis
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