Bullish Case: GameStop's strategic transition under CEO leadership, coupled with high retail interest, may drive a volatile upward trend. Efficient cost reductions and a focus on digital sales provide a potential catalyst for renewed investor confidence, possibly igniting a 'meme stock' resurgence.

Bearish Case: GameStop continues facing operational challenges amidst increasing digital market dominance and store closures. Declining fundamentals and market skepticism point towards a downward price trend, exacerbated by elevated short interest ratios.

Potential Outcomes: GameStop successfully transforms under Cohen (35%), or struggles with digital transition causing declines (55%). Meme stock resurgence provides brief rallies (10%).

Trading Oracle: Consider a bullish strategy with short-dated call debit spreads (e.g., 02/21/2025 28C) to capture volatility spikes driven by potential news events. Target a horizon of 1-2 months with focus on out-of-the-money strikes near current price for optimal risk/reward.

January 29, 2025