GameStop's Bitcoin Options Strategy Faces Crucial Test Amid Rally
GameStop's Bitcoin options strategy has been put to the test as the cryptocurrency trades above its disclosed $70,000 call strike. The company reported in a Sept. 9 filing that it had covered-call contracts tied to approximately 2,000 BTC outstanding as of Aug. 1, with maturities extending through Sept. 25.
Bitcoin was trading around $85,662 on Sept. 22, leaving the token more than $15,000 above the strike. If those calls remain open through expiration, GameStop would have capped its participation in further gains on the covered Bitcoin, potentially surrendering $31.3 million across 2,000 BTC.
The company collected option premiums for selling the calls and could realize different economics depending on contract terms and any premium received. It's unclear whether GameStop still has the calls in place after Bitcoin's rally, with Friday's expiration posing a key test for the strategy.