GameStop shares jumped 2% to $21.50 on November 26 as traders positioned themselves ahead of the company’s third-quarter earnings release scheduled for December 2.
GameStop Corp., GME
The video game retailer has caught the attention of options traders. Some 78,000 contracts changed hands, with call options heavily outweighing puts. The put/call ratio hit 0.18, well below the typical 0.22 level.
Wall Street expects GameStop to report earnings of $0.20 per share for Q3. That would be up from $0.06 in the same quarter last year. Revenue is projected to reach $987.3 million, marking a 15% increase year-over-year.
The stock hasn’t had an easy year. Shares are down 31% in 2025 as investors question the company’s retail performance and strategy for its massive cash reserves.
GameStop delivered a surprise in its Q2 report. The company posted earnings of $0.25 per share, beating the $0.19 estimate. Revenue climbed 22% to $972.2 million, crushing the $900 million forecast.
Hardware and accessories drove the sales growth. The segment continues to be the company’s biggest revenue generator.
GameStop closed Q2 with $8.7 billion in cash. That’s more than double the $4.2 billion it held a year earlier. The company also reported Bitcoin holdings worth $528.6 million.
Options traders are betting on volatility. Implied volatility rose 2.5 points to 60.78%, though it remains below the yearly median. The options market suggests a 50% chance the stock moves more than 9.24% after earnings, which translates to roughly a $1.99 swing.
The company’s fundamentals show contrasts. Revenue stands at $3.85 billion, but three-year revenue growth has declined 22.4%. Operating margins expanded to 3.77% from a historical median of negative 0.33%.
GameStop maintains strong liquidity. The current ratio sits at 11.37, and the quick ratio is 10.79. The debt-to-equity ratio of 0.85 shows moderate leverage.
Technical indicators place the 14-day RSI at 42.15, suggesting the stock isn’t overbought or oversold. Moving averages show a downward trend with the 20-day at $21.31, the 50-day at $23.41, and the 200-day at $24.60.
Insider activity leans cautious. Two insiders sold 7,339 shares over the past three months with no buying activity. Institutional ownership is 40.08%, while insiders hold 10.52%.
The stock trades at a P/E ratio of 29.53, near its five-year low. The P/S ratio is 2.67, and the P/B ratio of 1.86 also sits close to five-year lows.
GameStop’s market cap stands at approximately $9.65 billion. The company’s beta of 2.42 indicates higher volatility compared to the broader market.
The Altman Z-Score of 2.61 places the company in a grey area, suggesting some financial stress. However, the Beneish M-Score of -2.11 indicates the company is unlikely to be manipulating earnings.
Investors will focus on the December 2 earnings call for clarity on how GameStop plans to use its cash reserves and stabilize operations. The options market pricing suggests traders expect meaningful price movement following the report.
The post GameStop (GME) Stock: Options Trading Surges Ahead of Earnings December 02 appeared first on CoinCentral.


