NEW BULLISH Plays
GameStop Corp. - GME - close: 54.80 change: +0.33
Stop Loss: 53.25
Current Gain/Loss: unopened
Entry on October -- at $--.--
Listed on October 23, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.7 million
New Positions: Yes, see below
Why We Like It:
GameStop Corp. is in the services sector. They operate over 6,600 stores in over 15 countries selling video games and related equipment. A few days ago GME broke out past resistance near $53.25. Traders quickly bought the dip yesterday and GME looks poised to test and bypass its August 22nd high (which was $56.08).
If this rally continues GME could see a short squeeze. The most recent data listed short interest at 18% of the 114 million share float.
I am suggesting a trigger to open bullish positions at $55.50. If triggered our target is $63.00 but more conservative traders may want to exit near $60.00, which could prove to be round-number, psychological resistance.
Trigger @ 55.50
Suggested Position: buy GME stock @ (trigger)
- (or for more adventurous traders, try this option) -
Buy the 2014 Jan $60 call (GME1418a60) current ask $2.28