Long GameStop, Short AMC: A Meme Stock Pair Trade With Positive Carry

frostiix
2023-04-04

I am very careful in selling calls.

This is a war zone as often the case with heavily shorted stocks, but there is nothing amiss with GME, either on the long side or short side, that is present in numerous other stocks, except for perhaps the level of pumping by some of the longs and the swirl of unfounded conspiracy theories.I think GME had an outstanding quarter. I don't think they will turn a profit in the next two quarters, but they have positioned themselves nicely to turn another profit come the Holiday quarter again. Whether they can become profitable for an entire year, is still to be determined. If they can, then they have a good, though modest, future as a retailer. Now, if they become an ecommerce giant, that is different, but I have yet to see evidence of that happening.$GameStop(GME)$

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

Leave a comment
6
1