GameStop Corp. is experiencing a surge in options trading volume as traders place bets on the stock rallying 50% in just over a week. One notable option, the Dec. 8 $20 call option, has already changed hands 17,500 times, signaling growing interest from individual retail traders.

The majority of these positions were freshly opened and traded in small blocks throughout the morning, indicating a potential appetite from retail investors. GameStop has long been favored by the Wall Street Bets crowd, who gained notoriety for driving the stock up a staggering 2,700% within a few weeks in January 2021. However, experts believe that the recent surge, while reminiscent of the meme craze, is expected to be on a much smaller scale.

Traders were able to acquire the Dec. 8 calls at relatively low prices, ranging from 6 cents to 21 cents per contract. These positions also offer the opportunity to capture the upcoming earnings report of the video game retailer, scheduled for Dec. 6. The options market has implied a 12% move in the underlying shares, which falls short of the necessary advance required to make the Dec. 8 call option in-the-money, according to Bloomberg data.

The recent surge in GameStop options trading highlights the continued interest and speculation surrounding the stock. While traders anticipate a significant rally, it remains to be seen if the stock will experience a surge similar to the one witnessed during the Covid-19 lockdowns. As the earnings report looms, market participants will be closely monitoring GameStop for any signs of future volatility and potential price movements.

Please note that all information mentioned in this article is based solely on the provided context.