it think gme is set too beat earnings real good next week....i would buy puts
though as this one gets sold off on all good news ,,its one of the most hated
and miss under stood stocks on wall street...gta 4 sells 500 million in one week
and gme sells off ,,gme reports great 4 q earnings and sells off ,gme raises
guidence 2 different times and it sells off both times..i think the trade is too
short it on wens and cover the next day after it reports ,,even though i am long
the stock .

1.5x open interest isn't really remarkable.

When they start printing thousands of calls over open interest that's a sign of
institutional buying.

Like in Yahoo when they were trading 30k calls over 2-5k open interest. That
was Ichan and Paulson stepping in and putting big money to work.

Nick a couple things...you dont even need to hold this guy to the end of the
month. you buy it for the implied volatility rise..and you dont worry about time
decay just yet because this is a front month options so its not really going to
kick in until the last weeks in june. furthermore not really that pricey i mean
if your looking at hte final value of gme at 57.50 thats not pricey at all the
stock was just at 56. I think that move is easily possible. And anyway you can
get out right after earnings nad still make a boat load because all the premium
from volatility or time decay still remains.

Call me crazy, but those look a bit pricey, to me at least.

thanks missy i agree.

i also just called several gamestops and they told me their sales ahve all
increased quite a bit in all the games the street thought would sell more. also
assured me that the video game market was not held hostage to consumer
discretionary spending apparently.

Something to consider. I have a lot of contact with high school/middle school
kids. During the summer many of theses kids hole up inside playing video games
ALL DAY! Don't underestimate summer sales.

Wall Street shrugs off results; looks to May

Analysts covering the video game sector for Wall Street brokerages largely
shrugged off the results, noting that game sales still rose an impressive 68%
for the month.

"Notwithstanding the huge downside to our estimates (which we now believe
were too aggressive), the sales figures reflected dramatic growth in unit
volumes year-over-year, suggesting that sales are widespread and that the video
game industry is resisting the onslaught of a recession," Michael Pachter
of Wedbush Morgan wrote in a note to clients Friday.

Pachter admitted that he was "surprised by relatively weak PS3 and Xbox 360
sales," but predicted that a strong release slate for the rest of the year
will help drive more hardware sales.

Todd Mitchell of Kaufman Bros. wrote that the late-month releases of GTA IV and
"Mario Kart Wii" - which moved 1.1 million units - "understate
the true momentum here and point to upside in May."

its conviction buying...or someone trying to step up the options for hte next
week..so you allow them to step it up and take your profits ..or game earnings.

Kabirm, just looked at this, what are the implications when the volume exceeds
the open interest?