Today I bought a July 55 Call option on GME. GME is the ticker for Gamestop which is the world's biggest video game retailer. Despite rising cost of living and less entertainment spending, GME has been posting great growth. Netflix and GME have both benefitted from consumers trying to get more bang for their buck. GME has been a strong performer the last couple years (Nintendo also has been booming).
Their is always a specific pattern that I look for before making a trade. This stock has pulled back to its 50 day moving average and looks to be forming a bullish engulfing pattern as we speak. My entry price was 4.20. The stock price is currently 54.00ish. If the stock price closes below 52.00 then that would be my stop loss and exit for this trade.
I would anticipate this stock moving up above the 59.00 or 60.00 level in the next few weeks. The stock must rise to at least 59.20 to break even if holding until expiration.
Pete
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