GameStop (NYSE:GME) stock is in play again this week, as chatter on message boards ahead of the company’s earnings, and a potential short squeeze, drove the meme stock up 30% Thursday after gaining nearly 30% Wednesday.
Is Now A Good Time To Buy GameStop?
Scott Sheridan, market expert, and CEO of tastyworks comments:
Q1 2022 hedge fund letters, conferences and more
"GameStop is really in a category all its own. I don’t recall a stock that was this heavily influenced by a group of renegade traders. My memories of taking my son there are of a small, overcrowded space more reminiscent of a garage sale than a retail store. I’m not sure how much this stock price is connected to anything to do with the business as much as it’s more a rallying cry for some retail traders wanting to assert themselves.
Increasing the shares outstanding should have the effect of diluting the stock price. However, again, GameStop is a horse of a different color. Right now, markets are expecting a trading range of somewhere between $100 - $180 between now and June option expiration. That’s a pretty wide range and the options themselves have fairly wide bid/ask differentials. I don’t have a problem trading here, but I would keep it small and try to not move too far off midprice so any trade isn’t giving anything up relative to theoretical value."
