GameStop Corp reported strong Q2 results, with sales down but gross margin up. Collectibles sales were a bright spot. Today, unusual call options trading in GME indicates bullish sentiment. GME stock is trading at $21.75, off recent highs. Should investors buy?

Investors are buying GME call options, with large volume at $25 strike price expiring in January. This implies a bullish outlook. Buyers hope for a 21% stock rise for positive intrinsic value. Sellers may also expect GME to rise. Should investors follow or buy GME stock?

GameStop’s SOTP price target values its stores, Bitcoin holdings, and net cash. Total SOTP is about $14 billion, expected return of +43.77%. With a potential 12.85% annualized return, GME looks promising. However, caution is advised with short-term call options. Existing shareholders can benefit from the covered yield.

Read more at Barchart: Unusual Call Options Volume in GameStop Corp. Stock