$GME COVERED 260508 CALL 28.0$
Disclaimer: Whatever I say or post doesn't act as financial advice, so please do your due diligence before making any decision.
Hi readers! Here is my sentiment on GME on a short - medium term outlook.
Returns (5 yr avg)
ROA -4.3%
ROTA -2.8%
ROE -9.5%
ROCE -7.6%
ROIC -11.3%
Valuation (TTM)
P/E 32.3
Financial Health
Cash $9.01B
Net debt -$4.65B
Growth
Rev 3yr - 14%
Rev 5yr -9.2%
Rev 10yr -8.8%
EPS fwd 2 yr -38.6%
Based on the financial metrics, concerns persist about GME substantial debt load of approximately $4.2B against cash reserves of $9.1B. Revenue estimates are still on a negative level, despite a PE ratio of 32.3, which reflects a significant overvaluation of the stock.
GME has been dwelling into alternative strategies to generate income such as AI innovation and the attempt to acquire eBay as the latest strategy amid its continued decline in core business performance. However, none of the strategies seem to improve the operational struggles and increase revenue.
In addition, the MACD, Stochastic and RSI all point towards a bearish signal and move for the stock. However, on the shorter term it seems like it is acheiving higher lows, creating an ascending triangle pattern.
With this information, I adopted a covered call strategy, buying 100 stocks of GME @ $25.15 and sold GME $28 Call 08 May expiry @ $0.29. So even if the option got exercised, I stand to gain $285 in profit. And if not, I will continue to sell call.
@Madluvyz - Specialist in using TA and FA to sell options and swing trade.[Evil]
Modify on 2026-05-05 11:39
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