To The Moon

$GameStop(GME)$

Last Friday, we discussed how the wily dealers still had open interest in longer-dated GME calls, but theoretically would likely wait for implied vols to settle before reloading - with June 21st opex being the next potential strike window.

Well, it appears they got more impatient than expected and started redeploying before vols could fully normalize:

Similar to their pre-spike modus operandi, they've been accumulating the front-month, at-the-money calls again. On the June 21st expiry, the $GME 20240621 20 CALL$  saw over 22,000 lots trade for over $100 million in premium.

Current 30-day implied vol sits elevated at 190%, well above the 163% levels from the prior two weeks.

In addition to the 20 strikes, the dealers also scooped up 5,000 of the $GME 20240621 25 CALL$  for $23.25 million.

I mean, come on guys - dropping blocks like these is basically ringing the bell and telling the whole world to expect fireworks in the June 17th weekly cycle, no? Or do the dealers have such conviction in their astrology that no amount of forewarning can thwart their grand schemes?

$VanEck Semiconductor ETF(SMH)$

With NVDA earnings expected to propel the semis higher, one large trader rolled their existing $SMH 20240621 215 CALL$  position up to the 245 strikes$SMH 20240621 245 CALL$ .

They rolled 115.95 million in premium from 50,000 lots of the 215s, into 72 million of new 17,000 lot positions in the 245 calls.

$Tesla Motors(TSLA)$

Possible dip-buying interest emerging in TSLA, though not massive sizes. The June 31 200 and 220 calls saw significant upticks in volume this week. The $TSLA 20240531 200 CALL$  traded 58,000 lots with a buy-side bias, while the 220 strike saw 48,000 contracts traded with a sell-side bias.

Of course, it could also just be chasers getting sucked in after Tuesday's ramp, setting up for another round of put seller slaughter next week. Only time will tell.