Why did GME go up? The answer is simple, last week, in the option chain, the amount of open interest on gme was insane for the $30 strike. An article pointed out that if gme went higher than $30 by last friday, it could go parabolic as a result. This was all true. However, on friday, gme closed below $30. The one requirement for gme to go parabolic was the close above $30 last friday; it did not. And therefore the open interest for the $30 did not happen.
Today's action, is a Pump and Dump with a big sprinkle of FOMO. Right now, if you open the option chain, you would see that a lot of options have been sold in the money. Just as it was discussed in the wall street bets conversation this morning. This is a very clear indication that the gains will not be sustainable. You can also see whale activity in the option chain, buying long dated puts. At 9:41 am, over 1 million shares were sold at over $34 ($5 higher than the current price). GME will dwindle in price over the next 5 days with a lot of fake little surges. The cost to borrow is low and there are shares available to short. I closed my position that i had expiring this week and opened a long dated put position. If GME surges, I plan to double down on my position as soon as I see the volume confirm that the pump is dwindling.
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