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!

 

 

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