GameStop's Bitcoin options strategy faces a critical test as the cryptocurrency trades substantially above the strike price on contracts the company disclosed in a September 9 filing.
According to the filing, covered-call contracts tied to approximately 2,000 BTC were outstanding as of August 1, with maturities extending through September 25. Bitcoin was trading around $85,662 on September 22, more than $15,000 above the $70,000 strike price.
The potential upside at stake: If the calls remain open through expiration, the difference between the current spot price and the strike amounts to roughly $31.3 million across the 2,000 BTC position. This figure represents potential gains that GameStop would forego if the contracts are exercised, though it is not a realized loss.
GameStop collected option premiums for selling the calls, and the final economics depend on contract terms, premiums received, and whether the company has since closed or rolled the positions. The filing only confirms the calls were open on August 1; GameStop has not disclosed the current status of the exposure.
How Covered Calls Work
Covered calls allow an asset holder to generate premium income by selling the right to another investor to participate in gains above a specified price. The strategy becomes less attractive when the underlying asset rallies sharply above the strike, as appreciation beyond that level is effectively surrendered while the contract remains outstanding.
GameStop has previously acknowledged that its covered-call program limits participation in Bitcoin gains above relevant strikes. Bitcoin's advance into the mid-$80,000s has made this trade-off more visible.
Unresolved Details
Public filings leave several specifics unclear. GameStop has not disclosed whether the over-the-counter contracts settle in cash or Bitcoin, whether they can be exercised before maturity, or how automatic exercise and closeout provisions are structured.
As of August 1, GameStop recorded a $2 million derivative liability for covered calls and reported approximately $13.8 million in gains from changes in their fair value during the first half of fiscal 2026. Previous filings show GameStop has actively adjusted the strategy, with earlier tranches expiring before new contracts were entered.
The 2,000 BTC referenced by the covered calls is separate from 4,709 BTC that GameStop pledged to Coinbase Credit under a collateral arrangement.
