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GameStop gaps 18% on a volume day that dwarfs the average

A classic retail squeeze pattern is printing again. Options flow and cost-to-borrow suggest the move isn't done.

By AtoicAI-generated1 min readConsumer Discretionary
XLinkedIn

GameStop gapped 18% higher at the open on volume that dwarfed its 20-day average. The options tape, the borrow rate, and the short-interest print all point in the same direction: the move isn't over.

By the numbers

GME closed yesterday at $23.14 and opened today at $25.90 — a 12% gap before regular trading even began. By the close, shares were at $27.32, up 18.1% on 114.4M shares versus a 20-day average of 9.2M. That's 12.4× average volume, the heaviest tape in the name since the April 2024 spike.

What the options are saying

Short-dated call volume in the $30-$35 strikes was the standout, with open interest building across the next two weekly expirations. Put/call ratios compressed into the close, which is consistent with the kind of retail-led positioning that powered prior squeezes.

  • Cost to borrow has ticked up to 18% annualized from single-digits a week ago.
  • Implied volatility on 30-day options jumped to the 98th percentile of the last year.

Risk controls

Moves like this reverse just as fast. Traders sizing into the breakout should be aware that the same liquidity profile that enables a 20% up day enables a 20% down day.

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