Anybody fading GME?

xandman

xandman

Gap up last week from revenue beat of .03. Stocked popped but sold down after the open. Short interest which usually runs in 30% range is currently at 16% and change.

Could run up to $50 by Nov even with the lack of short squeeze for fuel. Option are realtively cheap right now post earnings.

Div on 8/29.
 
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I faded GME at the Open $55.10 and realized GME was not breaking down it's usual "Gap and Dump" mode. . I am long ATVI, EA, and flat with GME. Did you notice the price action with GME was different this time, something has changed with GME usually "Gap up and Dump" mode. If GME holds I am going long, if not I will jump in the Short again, something feels different this time, did you catch it? Good Luck Xandman!


I faded FL at the Opening print, sorry about the mistake. I watched GME trade, it trades exactly like STZ so I waited for the classic Spike up, we got our Joker Opening and I waited because I thought we would spike to $46 and crater down to $41 like GME usually does. I got my Short in $44.10 and waited for GME to fall because it did not do it's regular big gap up. I held until we hit $42.5 three times, finally I covered GME and now I am thinking this time is different if we hold out. Sorry my pricing is off, I was all over the place on Friday, made some weird trades on GMCR too. My bad, did you notice GME did not sink or go negative like it usually does? Sorry for the error, FL was the $55.10 print
 
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Thanks for the input, Jesse. I wouldn't mind straddling that ATVI. Vol is low and the chart is hesitating after a smooth run. Earnings still beating though.

If we get a squeeze on GME tomorrow, I will have a runner.

Wow. FL is parabolic. I thought this business was dead 5 years ago. A favorite store of the Millenials. Can't fade that in the long term.
 
Avoided GME Today, you see why my friend, too choppy with a upward bias. I bought more FL $55 Calls today, with FL the NYSE usually dumps the stock at the Open if we are heading up, today you can feel the buy pressure. From a Charts view it look's Overbought, I thought that was the case with SKX at $40, I had loads of Callls I straddled as we moved up. I look at SKX and they don't have the EPS power or price authority like FL does, getting stock in shoe stocks can suck from a options point of view.

NKE is one of those stocks that runs up before earnings, drops off and gets stuck for months, we still have to take out the $80 high on NKE from months ago.



I own no SKX, same reason I avoid DECK and NKE, FL is a good steady grinder. Currently I am still thinking of going Long GME if we can get above $44 and hold. When EA came out with earnings, in After-Hours trading it was as high as $44 and feel to $34 over the next few days. I am always happy to send you what I am long, I got some power stocks for the rest of the year if you want them.
 
GME will probably fill the gap tomorrow and then reverse. In any case, I will be incommunicado for a month. Flattening out today.

We usually get a a nice rally when I'm away from the market.
 
Hey, as long as you get back before the Institutional Money starts dumping their losers and artificially depresses these stocks far below Book-Value and time away is great to clear your soul! You taking any E-Books on Trading Psychology or "Trading with the Plan" style, even if you don't have access to the Markets these books still connect you to it.

Have a good month away, just get back before their Tax Loss dumping is over so we can pick out the choice stocks with lots of cash and turn-around potential. Take care!
 
this one.. I plan to Sell OTM calls of Jan 2015 and use those funds to buy OTM puts..
a directional bet.... we shall see.- i need a slight pop from this one to get my act together.
 
I guess you are really down on the business model. It's hard to prognosticate on the short side without a catalyst. You better check your skew on that call sale. Front month vol is cheap.
 
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