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farhaven | 1 year ago
Then either buy put options that are currently barely in the money (and will go further into the money once the stock comes tumbling down), or sell call options that are out of the money (or very slightly in if you can tolerate that risk) and will go further out once the price of the underlying goes down.
As with shorting stock, the risk for selling calls is technically unlimited (even though IMHO it's extremely unlikely that GME will go to the moon again the same way it did last time). With buying puts, your risk is the money you spent for the option. If the stock price is higher than the option at expiry, you'll have lost all of it. If it's lower, you can pocket the difference between strike price and stock price, minus the cost of the option.
underlipton|1 year ago
FWIW, it hit about $320 during pre-market trading this morning, in terms of the price it would have been before the stock split in 2022. Currently sitting at $200, in those terms.