How to profit from trading GameStop?

On Monday, the share price of GME fluctuated wildly, resembling a rollercoaster ride. Despite the potential for an SEC investigation and trading restrictions imposed by E-Trade, Gill remained steadfast in his position.

Following the close of the US market on Monday, he updated his holdings on Reddit, echoing his actions during the 2021 retail investor short squeeze. A screenshot revealed that his holdings in GME stocks and options were unchanged from Sunday. This latest post from Gill came shortly after reports surfaced that E-Trade was contemplating a ban on trading related to GME.

By the end of Monday, Gill's unrealized profit from his GME stock stood at 33.62 million, representing a profit percentage of 31.62%. His unrealized gain from GME options was 33.62 million, representing a profit percentage of 31.6251.83 million, with a profit percentage of 76.04%. Gill's paper profit was even higher earlier in the day, but he chose not to cash out.

Implement a trend-following strategy: Enter when the upward trend is just beginning, capitalize on profits promptly, and cut losses once the support level is breached; avoid chasing highs.

Utilize a strangle options strategy to bet against volatility. Meme stocks are largely driven by hype, which is likely to subside over time, leading to a noticeable price correction. For safety, widen the strike range of your options—though this may yield less premium, it increases safety.

Another relatively safe approach is to sell an out-of-the-money call option with a far expiration date (as shown below). Although the gains may be modest, the strategy is considered safer.