GameStop will begin trading on a split-adjusted basis later this month
GameStop Corp. (NYSE:GME) is jumping ahead of the opening bell, last seen up 6% at $124.45, following the a stock split announcement. Specifically, the videogame retailer said it will begin trading on a split-adjusted basis on July 22, following a 4-for-1 stock split.
Today’s price action puts GameStop stock back on track to test the $125 level, which has kept a lid on the shares for about a week. Meanwhile, GME’s 60-day moving average is still acting as pressure on the charts, while the equity sits roughly 21% lower year-to-date.
A short squeeze could also induce tailwinds. Short interest dropped 6.6% in the most recent reporting period, but still makes up 22.7% of the stock’s available float, or over three days’ worth of pent-up buying power.
Now looks like a good opportunity to weigh in on the security’s next move with options, given GameStop stock is seeing attractively priced premiums at the moment. This is per the stock’s Schaeffer’s Volatility Index (SVI) of 91%, which sits in the 21st percentile of its annual range.