Is GME Brewing a Massive Crash?

$GameStop(GME)$

Over the past two weeks, there has been notable activity in deep out-of-the-money long-dated put options for GME. Sorting the open interest for puts reveals strikingly low strike prices:

• $GME 20271217 5.0 PUT$ 

• $GME 20270115 5.0 PUT$ 

• $GME 20270115 10.0 PUT$ 

• $GME 20270115 10.0 PUT$ 

• $GME 20271217 3.0 PUT$ 

A closer look at the trades shows these options are primarily single-leg purchases, with some conducted on-exchange.

Keep in mind, GME’s stock price was $23 on June 18, while these puts have strike prices ranging from $3 to $10. This implies an expectation for the stock to collapse by 50% or more, essentially back to pre-meme-stock levels.

These puts are not cheap, indicating that the bears are serious. On June 12, $GME 20271217 5.0 PUT$  traded 23,900 contracts. At $0.60 per contract (x100), the total transaction value was approximately $1.4 million.

Could this be the year we witness the fall of a once-infamous meme stock?

However, since these puts expire in 1–2 years, it’s hard to predict exactly when the bears will act. A likely catalyst could be the earnings season in July.

I bought one contract myself, just to watch the action unfold.

$NVIDIA(NVDA)$

Tuesday’s trading setup was perfect for selling straddles, so to test my thesis, I sold both the $145 call and $145 put:

• $NVDA 20250620 145.0 PUT$ 

• $NVDA 20250620 145.0 CALL$ 

Currently, we’re in the pre-earnings quiet period, combined with a triple witching expiration week. Volatility is expected to remain low, and the stock is likely to trade sideways until Friday.

$SPDR S&P 500 ETF Trust(SPY)$

The bears couldn’t wait to position for next week’s downside.

On Monday, they opened put spreads expiring next Monday, targeting $587–$572 puts, with 20,000 contracts traded for each strike price. The bet suggests SPY could fall below $587 but stay above $572 before next Monday:

• $SPY 20250623 587.0 PUT$ 

• $SPY 20250623 572.0 PUT$ 

Based on the implied volatility for the week of June 27, SPY’s expected trading range is $588–$612. A drop by Friday isn’t out of the question, so I plan to close my sell-put position for Friday’s expiration at the market open.

$iShares China Large-Cap ETF(FXI)$

Significant bullish activity was observed in FXI, with large trades on these call options:

• $FXI 20260116 41.0 CALL$ 

• $FXI 20260116 39.0 CALL$ 

The 41 call saw over 10,000 contracts traded, though records suggest it’s closer to 20,000. Both trades had transaction values exceeding $2 million each.

In contrast, KWEB and ASHR showed no significant block trades. I think it’s worth monitoring for now, as there could be further pullbacks next week.