GameStop is creating a new non-fungible token (NFT) division
GameStop Corp. (NYSE:GME) is skyrocketing today, last seen up 10.8% at $145.20, following the company's new non-fungible token (NFT) venture. The videogame retailer plans to create an entirely new division devoted to NFTs, which will allow the purchase and trading of virtual assets. The firm is also reportedly close to securing partnerships with at least two cryptocurrency companies to develop games on blockchain and NFT technology.
Unsurprisingly, the meme stock's options pits are exploding with activity today. So far, 73,000 calls and 31,000 puts have crossed the tape, which is six times what is typically seen at this point The most popular is the weekly 1/7 170-strike call, but new positions are also being opened at the 200-strike call from the same series. This means options traders expect GME to move higher before the market closes today.
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 97%, which sits in the 6th percentile of its annual range. What's more, GME's Schaeffer's Volatility Scorecard (SVS) ranks at a high 91 out of 100. In other words, the equity has exceeded options traders' volatility expectations over the past year.
Today's price actions puts GME back above $140, after two-straight closes below that area, which hasn't happened for the security since March. Plus, GameStop stock has regained support from the 320-day moving average, after briefly slipping under this trendline. Year-over-year, the stock is up over 702%.