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Why Are Options Traders Interested In GameStop Stock Today?

Several trading halts over the past week have sent the implied volatility of GameStop Corp. (NYSE: GME) options expiring in March past 500%.

· 03/17/2021 10:34

Several trading halts over the past week have sent the implied volatility of GameStop Corp. (NYSE:GME) options expiring in March past 500%.

Bill Gross, the co-founder of fixed income investment company Pacific Management Co., managed to book a profit of about $10 million from the GameStop trading frenzy earlier this year. 

Gross calls the current volatility in the GameStop name the "perfect opportunity for options sellers," but warns against buying options.

See Also: How To Trade Options

IV, or implied volatility, is a key component in the pricing of options, as it reflects the chance that the option will be in the money by the expiration date of the option.

GameStop's stock traded higher by 4.5% to $217.53 at publication time.