RB Trader Sees Unusual Option Activity In GameStop

Following an earnings miss on November 21 and an extension of the Cyber Monday pricing, shares of Gamestop GME are finally getting a lift today after falling nearly 20 percent from their pre-earnings level of 44. On the heels of the rally, RB Trader identified a big buyer of the GME January 35 puts emerged, with 13,500 contracts trading at 1.97, for a total cost exceeding $2.6 million. Given that the price of GME is hovering near the 35.50 support level, the buyer of the puts may be using today's rally to put a floor in the price of GME at 33.03 (35 strike less 1.97 premium paid) while keeping the upside open if the stock appreciates.