TRADE GAMESTOP (GME) STOCK WITH IQ OPTIONS
GameStop is a U.S.-based video game and gaming-related merchandise retailer considered to be the largest video game retail company. The corporation’s headquarter is located in Grapevine, Texas, and has opened more than 5,500 locations throughout the USA, Canada, Australia, New Zealand, and Europe by 2020.
For GameStop, the year 2021 started with a bang as it experienced a textbook short squeeze scenario in January, orchestrated by hundreds of small-time traders belonging to the same community r/WallStreetBets of Reddit, an online forum site. Fueled by the trading frenzy, NYSE-listed GameStop (GME) stock price rose from a mere $18 to a staggering $450. As a result, many Wall St. hedge fund managers bore significant losses while main street retailinvestors enjoyed an incredible amount of profits as indicated in the GameStop GME chart. The GameStop trading frenzy shifted the paradigms of modern investing before Robinhood placed a ban on further GME trading.
GameStop (GME) stock history
Before January 2021, GameStop was having a hard time staying afloat in a market that was paralyzed by the COVID-19 atrocity. In August 2020, the GME stock was priced just $6 apiece. The situation got even worse when a Wall Street firm backed away from the company and started to bet against it to buy the stocks at even lower prices. But several at-home retail investors and online traders who banded together on the r/WallStreetBets chat room acted as a union to impact the GameStop markets significantly and drove GME stock up to 1,500% within a couple of weeks.
GameStop (GME) stock market conditions at present
As per CNBC, the GameStop trading frenzy was a “once-a-decade” stock spike scenario, likes of which most retail investors would never get to see anytime soon. The most challenging aspect of GameStop’s current market condition is its volatility. The surge which cost traditional hedge fund managers millions has slim chances to repeat itself but market experts believe that the GameStop action is far from over.
GameStop GME chart: GameStop (GME) stock price
Should traders buy GameStop (GME) or trade?
Should traders proceed with GameStop stocks or not rests solely up to the trader. However, we can explain the reasons to buy or trade GME currently.
Pros of buying GME
- Trading frenzy or not, GameStop (GME) still outshines many of its peers because it is one of the cheapest yet sizeable businesses in the U.S.
- Even though GameStop’s core business is reselling old and used video games, it possesses an eye-catching free cash flow ratio as GME trades at more than 6 times its earnings.
- The GameStop is losing relevance at a slower rate than some expected. A chunk of its profit comes from online, collectibles, and tech brands.
Cons of buying GME
- There are some obvious threats to GameStop stock in the market that would negatively affect its prices when tech giants such as Microsoft and others start selling or streaming to their consumers directly without requiring a middle man like GameStop.
- GME stocks may seem cheap but their profitability could swing to any side at any given time with the slightest hint. The physical market of games would not vanish easily but the adoption of digital console games is expanding more quickly than expected diminishing GameStop stock’s profitability.
- GameStop is plagued by weak guidance that deems the video game hardware cycle for its current problems. The release of new consoles would help improve the situation but experts say that the issue is GME’s reduced reach due to migrating into digital.
Pros of trading GME
- Unlike buying GME, trading GameStop (GME) stocks keep an individual safe from most of the afore-mentioned deeply-rooted problems.
- Once bears are done overplaying GME, it would be interesting to see the opening of new and more exciting positions.
- Investors around the world jumped on to make the most out of GME’s promising situation two months ago. It still is a money-making opportunity.
- The meteoric rise in GME prices not long ago makes guarantees that this continued demand of GameStop trading will not get irrelevant anytime soon.
How to gauge the situation with GameStop (GME) for profits?
Bringing about a market trading frenzy was impossible before January 21st, 2021. A group of determined investors led the way and proved that the market conditions of stock could easily turn into a rewarding opportunity if short selling works. Short selling is when a seller borrows some stock shares and sells them to buyers asking for market price. Stock prices start free-falling and traders begin series of buybacks at a cheaper rate. Surely, there are plenty of alternatives for online traders interested in GameStop (GME) stock this year, for example, CFD trading using an authentic broker site like world-renowned IQ Option.
Reasons to trade GameStop stock using IQ Option
- Unlike any other broker platform, IQ Option offers wide-ranging top-quality stocks CFDs which combine both European and U.S. stocks such as Morgan Stanley, Goldman Sachs, and Lockheed Martin Corporation.
- Stocks spreads play an essential role in maximizing the percentage of profits after a trade session. IQ Option is known to have extremely thin spread percentages that change several times a day giving CFD traders more profit.
- The minimum sized deal offered by IQ Option’s stock CFD is just $1 for its global clientele irrespective of any leverage setting. Through this feature, traders who have small trading accounts can diversify their portfolios and try out different stocks.
- Non-EU and pro-EU-based clients interested in IQ Option’s stock CFDs get leverage of more than 1:20, but the platform gives maximum leverage of 1:5 to retail traders belonging to the EU.
Trade GME on IQ Option to make profit from bullish AND bearish trends.