Trading GameStop for a Pre-Earnings Short

Hey traders!

GameStop has 25% short float, and Roaring Kitty has thrown massive fuel on the fire right before earnings.

With GME trading higher on high volume, and breaking through levels of previous highs, that sets it up for a potential short squeeze pre-earnings.

GME will typically trade higher before earnings, as buyers speculate and short sellers buy to cover. But, be warned because it also has fallen 3/4 quarters post-earnings in a ‘buy the rumor, sell the news,’ fashion.

Out of the money calls or at the money butterflies are two methods of trading this move. I discuss this and more with Kelly Evans on CNBC The Exchange. Check it out in the video below!

P.S. Check out our Memorial Day sale using this link!

Up Next...

Bullish Picks & My Debut on Trader’s Code

Hi Traders! Welcome to the latest edition of the Five Star Trader newsletter! As we continue our bi-weekly revival, I’m sharing my bullish outlook for this unusual September and highlighting some favorite trade entries. Plus, I’m thrilled to promote my debut episode of The Trader’s Code, filmed at the iconic NYSE with Jeffrey Hirsch (@almanactrader). … Read more

A Temporary Goodbye

I hope this message finds you well! I wanted to take a moment to share some personal news with you. As many of you know, I’m expecting, and it’s almost time for me to welcome a new addition to my family! As a result, I’ll be stepping away from my weekly market updates to go … Read more

Bitcoin to $80,000?

Hey traders! I’m spying a daily and weekly squeeze in Bitcoin, and it’s a stone’s throw away from breaking critical resistance at $70,000. If it can break through $70,000, we should go upward to $80,000. Coinbase (COIN) is also breaking out! Learn more in the video below: