On Sunday, YouTuber Brian Jung was nice enough to have me on his live stream. Welcome to those of you that found us there! On the show, Brian closed by asking us what our predictions were for GameStop ($GME) stock for the week.
I prefaced by saying that it’s impossible to predict short-term movements, something that even the quantitative risk-management folks struggle with, as we saw with this $GME liquidity fiasco.
But I also said that if I had to pick, I’d bet that the stock goes down this week. My rationale was twofold:
- Because of the stock halts, investor focus has been divided to other assets like AMC ($AMC), Silver ($SLV), and Dogecoin.
- Not many are willing to sell out of the money call options on $GME stock because of the volatility and potential losses. This removes one of short squeeze boosters the stock originally benefited from.
$GME is down 40% in pre-market this morning, so it looks like this hunch is playing out, at least for now. I hope none of us put in more than strictly gambling money, which is something I’ve stressed since we started covering this crazy situation.