The Blubber

Yesterday, we shed a little light on the Gamestop-led meme rally, wherein options flow from 8/25 seemed to suggest Gamestop (GME)  and AMC may continue their meme push onward. After a day-long pullback yesterday, GME and AMC are both showing solid signs of life in the early  hours of trading this morning. At the time of writing, GME is up 3.2% to $206.18 (still up nearly $57 (37%) in the last 5 days, and AMC is down 2.6% to $42.82; up $8.92 (26.31%) in the last 5 days.  Unusual Whales option flow for GME from the last hour of trading yesterday may give a little insight.

We can see in the image above that the majority of GME flow during the last hour of trading on 8/25 indicates a bullish sentiment, as shown on the right column by green labels.

As explained in yesterday’s Unusual Whales Nasdaq article, this is revealed by high premiums and volume for orders placed on the ask-side. This shows once again that there is a sentiment of continued positive movement. Let’s have a look at today’s GME flow to see how that sentiment has carried into the first hours of trading.

In contrast to yesterday’s EOD bullishness, this morning’s GME flow is much more diverse. We can observe in the image above that there are many more high-premium orders marked as “bearish” in the right column. Much like ask-side orders on call options show a sense of urgency for upward movement (explained by YourBoyMilt in his article YEET no. 19), large orders on put options can also indicate a sense of urgency, but for downward movement.

The duo of pie charts below shows volume for these contrasting orders (bid side vs. ask side) are nearly neck-and-neck; however, the premium paid gives bearish sentiment the edge, with 57% of the option orders above $30,000 in premium indicating an expectation of that downward movement.

Any time we see these memes come to life, it’s always a toss up of how far they will run. For the moment, GME and AMC are both well above their weekly lows. So even though the sentiment is leaning bearish for the time-being, we’ll have to wait and watch to see where things will go next. Until then, we’ll sit on the edge of our seats, waiting for the new installation of The GME Meme Saga.