Those strike prices were substantially higher than the stock's price, which was trading between $10 to $16.50 that week.
But what Sosnick found interesting was that the open interest went up faster for the $30 strike calls, signaling an expectation that the price would really rally this time.
The table below shows the rise in open interest on strike calls of 20, 25, and 30 set to expire by May 17 and the price of the contracts.
AdvertisementTom Sosnoff, the cofounder of Thinkorswim and Tastytrade, says there's probably a reasonable explanation behind the rise of open interest in GME.
As for the rise of open interest on the 30-strike price, he attributes it to the cheapness of those contracts relative to the other strikes rather than a function of price prediction.
Persons:
Keith Gill's, Roaring, Gill, Steve Sosnick, Sosnick, GME, Tom Sosnoff, there's, you'd, Sosnoff
Organizations:
GameStop, Social, Interactive, Traders
Locations:
GME