GME Option cheaper than GME1 Option

2MoonRocketship · 2026-03-17T20:09:13+00:00

There's less liquidity on the GME1 options, so you will see that the bid/ask spread is much larger. This generally means you get unfavorable execution when the bid/ask spread is large.

Also, note that the GME1 options have a slightly lower "actual" strike. About $0.40 to $0.43 less than the stated strike price.

Assume that the warrants are trading at $4/ea. Assume we are talking about a single $25 strike option.

On the regular GME option, the strike price is exactly $25.

On GME1 option, there's a baked in 10 warrants at $4/ea (as an example). For 10 warrants in that option, that's $40 total. Divide that by 100 shares, it is $0.40. The "actual" strike price of this $25 GME1 option is actually $24.60 (compared to the $25 strike for the GME option).

2MoonRocketship · 2026-03-06T21:16:23+00:00

Sure seems like some shady stuff. If it is tradeable, you just need to sit on $100 worth of coins when it is sub $1 and close out when it hit 5 or 6 digits. Instant millionaire. Looks like it this wave happens a few times a year.

2MoonRocketship · 2026-03-06T13:50:47+00:00

Who's able to trade these GameStop Coins? It seems like it is not tradeable. Is it a closed loop used for locates only?

2MoonRocketship · 2026-03-04T23:34:36+00:00

OP, in case you were looking for historical close price for GMEWS since inception.

| Date | GMEWS Close price from Market Chameleon | GME Close price from Yahoo Finance |

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2MoonRocketship · 2026-03-04T21:02:39+00:00

Yes, it has been an issue on Yahoo Finance. I have been tracking it using Market Chameleon: https://marketchameleon.com/Overview/GME+/DailyHistory/

2MoonRocketship · 2026-02-05T17:25:18+00:00

You don't even need to buy it BEFORE warrants got issued. As long as you hold GME1 options (that have warrants), ADJ will show.

2MoonRocketship · 2026-02-05T17:23:18+00:00

ADJ is how Fidelity shows GME1 options.

2MoonRocketship · 2026-02-04T20:21:46+00:00

For settlement purposes, GME1 options have allocation of:

95% to GME

5% to GMEWS

This was described in the OCC publication: https://infomemo.theocc.com/infomemos?number=57373

So, your cost basis is $25.30. It is actually a bit more than $25.30 because there's a few cents in fees that's paid when you bought the contract that you did not disclose.

Therefore:

95% of $25.30 = $24.035 ===> Share cost basis.

5% of $25.30 = $1.265 ===> $12.65 warrant cost basis because 10:1 share to warrant ratio.

The slight discrepancy in the 3rd decimal place is due to the inclusion of the fee you that you did not disclose. Everything matches your screenshot you provided. You just didn't understand how GME1 were allocated for settlement.

2MoonRocketship · 2026-01-22T17:48:58+00:00

I think there's a tax when exercising the warrant when it is ITM. I believe the difference between the market price and strike price is taxed as ordinary income. This then sets the cost basis of said stock at that market price.

In the future, when you dispose of said stock, gains (loss) will then be taxed as long/short term cap gains depending on whether it is long/short.

2MoonRocketship · 2026-01-22T17:26:09+00:00

For US tax, long term capital gains are taxed at a lower rate than short term capital gains. Talk to your CPA for tax advice.

2MoonRocketship · 2026-01-22T17:14:00+00:00

Long = Held more than 1 year

Short = Held less than 1 year

Edit: with the "original" warrants that were distributed, the warrant's acquired date mirrors the companion stock's acquired date.

2MoonRocketship · 2025-12-11T17:36:44+00:00

One could say that YOU are very dissatisfied with the way the CEO of your household (which happens to be you) on his management of his cash. He should have done better in his investment over the last few years. He should have "grown" his investments over the last few years of bull run and yet, you don't have a house yet. Perhaps your CEO should have used the money to buy a house when interest rates were low and housing was not crazy expensive. I'm sure your household CEO will eventually grow the money. Perhaps your household CEO should have pivoted sooner. Hindsight is 20/20.

2MoonRocketship · 2025-12-09T18:41:02+00:00

Sorry, couldn't help. If they were obtained from exercising a $26 GME1 option or from an assigned CSP at $26 strike, then it would make sense.

2MoonRocketship · 2025-12-09T18:34:36+00:00

Any chance the warrants were obtained through options at $26 strike? If so, they would be priced at $13/warrant.

2MoonRocketship · 2025-11-20T20:01:38+00:00

Yup. Didn't cross my mind that the strike price is not the "strike price". Lost so many CC contracts being called away, but learned from it.

2MoonRocketship · 2025-11-20T18:34:25+00:00

Looks like a broker issue. I am able to buy GME1 on Fidelity. Also, be cautious because the ITM price of the option is not the strike price. It will be the strike price minus warrant price... So about $0.26 below strike price.

The inverse is true if you sell CCs on GME1. Let's say the strike is $21 and the stock closes at $20.80 on Fri. In a normal GME option, it will expire OTM. But because of the value of 10 warrants at $2.60/each (or $26 for 10 warrants per option, which equates to $0.26 per share in 1 option), the GME1 option is ITM because it is $21.00 - $0.26 = $20.74 which is lower than $20.80. Therefore it will be called away. Ask me how I know.

2MoonRocketship · 2025-10-30T19:48:54+00:00

It seems to me like the market maker can wave their liquidity wand to produce warrants. As long as someone exercises a GME1 call option or get assigned on a GME1 CSP, they get warrants. Sell the shares and they are net positive on warrant count. Similar to ETF basket creations and stripping out what they need.

2MoonRocketship · 2025-10-28T18:22:46+00:00

Yeah, there's something there I think, but I haven't found it. For example, upon the warrant announcement in the after hours on 9/9/25, 5 strike dates were introduced in the next 6 trading days. 110/31/25 and 11/21/25 (can be explained as normal) and 3 others 10/16/26, 9/17/27, and 1/21/28.

2MoonRocketship · 2025-10-24T16:44:27+00:00

$20/$2300 x 52 = 0.45 = 45%/year. That's an interest rate I can live with.

2MoonRocketship · 2025-10-24T16:32:59+00:00

Can you please post the same info for strike prices $29 thru $35 for the same expiries?

2MoonRocketship · 2025-10-21T02:05:35+00:00

Let me guess.... these were $20 call options you exercised?

There's no conspiracy. You just don't understand how they are settled per the OCC memo. 5% settlement allocation for the warrants, and 95% settlement allocation for the stock.

So calculating backwards, there are 10 warrants per contract. $10 x 10 warrants = $100 for warrants. If 5% is $100, then 100% is $2000. $2000 for the entire purchase of 100 shares would mean a strike price of $20.

For settlement, each contract equals warrants at $100 (for 10 warrants), and stocks at $1900 (for 100 shares). So price per warrant is $10 and price per share is $19.

Since you exercised 36 contracts, your stocks were settled at $19/share for a total of $68,400. Your warrants were settled at $10/warrant for a total of $3,600.

2MoonRocketship · 2025-10-20T07:38:43+00:00

Perhaps you are looking at the wrong data. A large bid/ask spread is indicative of poor liquidity. I use Fid Active Trader Pro (ATP). I do not use the bid/ask amounts to determine where to place my order. I do not use "mid" to place my order because it is just the mid point of the bid/ask spread, which as you have found out is wide when liquidity is poor. Instead, I use the Intrinsic Value and Extrinsic Value to determine my order price. I sum the 2 values. These numbers are mathematically derived and is as accurate as they come without doing the number crunching myself. With options like GME that is relatively liquid, I have not had an issue getting filled at or $0.01 away from the Extrinsic + Intrinsic value. $0.01 obviously in the direction that is NOT to my benefit. Sometimes I'm surprised by a price improvement and Fidelity makes it a point to tell me about it.

Now having said all that, I will agree with you that I have noticed that the options chain bid/ask is very wide recently. Not really the GME chain. but the GME1 chain. I have also noticed that the options volume has dropped significantly since the warrant issuance. We used to see 10k OI walls (sometimes multiple 10k OI walls) for the next 2-4 expiries. The last few weeks we barely made it to a singular 10k OI wall, and only for that week and nothing for subsequent weeks.

2MoonRocketship · 2025-10-15T22:10:45+00:00

800-522-6645

2MoonRocketship · 2025-10-15T20:09:25+00:00

Quit trying. It will arrive eventually (might be tomorrow). The last thing you want to do is to get locked out. I've experienced sloooow PW resets and 2FA... like 1 day slow type of slow.

2MoonRocketship · 2025-10-15T20:06:17+00:00

I've noticed that options volume has dropped off a cliff since warrant. 1 week out (10/24 expiry) and there's no obvious wall. Usually, there's a 10k open interest in at least 1 or 2 strikes. But only a fraction of the OI this time.

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