Gamestop

I didn't play it, I was referring to the straddle in general.
Stocks like this scare me. Too high of a short interest to play an ER.

 

I'm with you

 

too good a deal to pass up, most undervalued stock on the market. Rock-solid dividend as well

 

I looked at the straddle IVs for various months. The IV is predicting a very large move so unless you have some predictive edge to know the move is going to be bigger than that you're just giving away money.

 

Yesterday was the play on the weeklies.
$24 puts/calls were $0.75. Stock closed at $24. $21 now.

 

I've got great news! I'm becoming quite the contortionist. How? Kicking myself in the rump for covering my short on GME yesterday. D*** IT!

 

Well, for now the easy money has been made... but its not over. This thing could do a Radio Shack... or close.
Wait till they announce they are cutting that "rock solid dividend"... I'm gonna read the CC transcript this weekend and see what they said. Also peer in on a few stores.
If I'd have had any coyones I'd have bought those $24 puts yesterday.. and not even considered the straddle. I did neither because of being bitch slapped so many times by "sure things". This one actually played out as it should.

 

I agree that it's not over. Easy money (trading profit on short) was made, and the "serious" money lies ahead.
GME shedding 2-3% of their stores is a clear sign, they know the market their in is under threat by online. My teenage son, along with some other kids his age are less attracted to Xbox, and now finding other opportunities online. Who knows? Maybe we'll see kids riding bikes and in the playgrounds again.
There's a lot more hammering on the way for GME. We called this as a short on 3/13 @ $24.19. Sent you a PM

 

Its diving into the close.

 

That dividend payout is NOT sustainable not with the earnings that they are pulling in right now with their current business model. If they get rid of the useless assets on the books right now and start investing in profitable ventures and revitalize the business model to have positive earnings, maybe. Could be increasing dividend payout to 1) Getting rid of excess cash so they won't become a take-over target and 2) Start of a winding down process just in case their tech. brand sales division also does not work out, you never know.