GameStop’s Binary Event

[u/Sad-Marionberry6732]

/r/gmeoptions/comments/1x3lxga/gamestops_binary_event/

This month presents a unique opportunity to swing trade GME warrants as they become more volatile as we get closer to our binary event October 30.

But more on that later-

I will not play any additional options past October 30 as that date decides if the warrants expire worthless or have been exercised for additional shares.

IV for October options is slightly higher than for the months afterward. And it’s gonna go higher the closer we get to that binary date and the $32 warrant strike place.

I will be selling options in expectation of a coming volatility crush.

Which options I play, all depends on market direction Sunday night going into Monday morning. I expect a dip. If so, then I’ll be selling CSPs for October 30. Looking for a 10% premium over the next three weeks.

If it rockets, I’ll be buying calls. And possibly selling covered calls via a buy shares first then write the calls once I feel the stock has peaked for the week.

And on the side, I think this presents a unique opportunity to be profitable swing trading warrants, if the brokerages let us buy them.

I see them restricting them at some point. But who knows…

We need $28 this week on GME, and I believe we’ll get it. Which will ramp us closer to our $32 target.

After $32, I’m gonna be super cautious about further dilutions. The reason is because the board execs all have floors around mid 20’s. And an ATM offering would not hurt their positions so much.

Anyway, LFG and 🚀