GameStop shares rose 2.11% to $21.50 as traders loaded up on options contracts ahead of the company’s third-quarter earnings announcement scheduled for December 2.
GameStop Corp., GME
The video game retailer saw 78,000 options contracts trade hands. Call options dominated the action with a put/call ratio of 0.18, well below the normal 0.22 level. This suggests traders expect upward movement.
Analysts project earnings of $0.20 per share for Q3, up from $0.06 in the prior-year quarter. Revenue is expected to hit $987.3 million, representing 15% growth year-over-year.
The stock has struggled in 2025, dropping 31% as questions persist about the company’s retail operations and plans for its large cash position.
GameStop’s Q2 results came in strong. The company reported $0.25 per share in earnings, topping the $0.19 consensus. Revenue jumped 22% to $972.2 million, crushing the $900 million estimate.
The hardware and accessories segment powered the sales beat. This category remains the largest contributor to overall revenue.
The company ended Q2 with $8.7 billion in cash, up from $4.2 billion a year ago. Bitcoin holdings totaled $528.6 million at quarter-end.
Implied volatility increased 2.5 points to 60.78%. Options pricing indicates a 50% probability the stock moves more than 9.24% following the earnings report, equating to roughly a $1.99 price swing.
The company’s financials show contrasting trends. While operating margins expanded to 3.77% from a historical negative 0.33%, three-year revenue growth declined 22.4%.
GameStop maintains solid liquidity with a current ratio of 11.37. The debt-to-equity ratio stands at 0.85, showing moderate leverage. Market capitalization sits at approximately $9.65 billion.
Technical indicators show the 14-day RSI at 42.15, suggesting neutral territory. The stock’s beta of 2.42 signals higher volatility compared to the broader market.
Insider activity shows caution with two selling transactions totaling 7,339 shares over three months and zero purchases. Institutional ownership is 40.08% while insiders hold 10.52%.
Valuation metrics place the P/E ratio at 29.53, near five-year lows. The P/S ratio is 2.67, and the P/B ratio sits at 1.86.
The options market expects meaningful price action after December 2. Traders positioned bullishly will watch for management commentary on cash deployment strategy and operational improvements. The December 2 earnings call will provide the next major catalyst for the stock.
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