GameStop Following the Path of Blockbuster: Ramelli

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March 28 (Bloomberg) –- KeeneOnTheMarket's James Ramelli discusses the outlook for the U.S. stock market, BlackBerry's earnings and the prospects for GameStop. He speaks with Julie Hyman on Bloomberg Television's "Market Makers." (Source: Bloomberg)

Earlier about this.

We have been stuck in a range.

The stocks have not been able to make much progress.

If you look at the vix falling, that sort of supports that.

Any signs of a breakout in either direction?

We are not seeing any signs of a breakout yet.

We look at the past month, the weather and how it has affected the economic data.

We have overlooked some pretty downbeat ada over the first part of the year, and everyone has blamed the weather.

The market is pricing in a big-time turnaround for the spring.

Every ceo at mr.

Earnings this quarter has blamed the weather.

If we do not see that turnaround in the spring, this market has a long way to fall.

With the vix below 14, buying protection is still relatively cheap, and probably prudent if you are a longer-term investor.

Is that something you would be doing as well, buying protection using the vix?

We do not trade with that long of a time horizon.

I am in and out quite a bit.

Trading the market is difficult, because it is quite choppy.

For those who are long equities, i think buying protection is very good at these levels.

Something else that might be a tricky bit to get in and out of his blackberry.

The company came out with its earnings today.

The numbers were better than estimated.

Emily chang just talked to ceo john chen.

He has talked a lot about the company being more efficient and selling off real estate.

Talk to me about what you are seeing, options-wise.

It is well off the highs now.

Leading into the earnings report, he saw a lot of activity in blackberry puts, investors betting the stock was going to hand lower, or looking for protections.

I think the stock looks weak today.

It will put a huge wake on the top of the daily bar if it closes at these levels.

It has found sellers in the range of $10 and $11 twice this year, and it took 20%. they are not gone be posting positive earnings until sometime next year, they be even late 2015. looking for investment opportunities, better opportunities out there.

Let us talk about a company that came out with earnings earlier in the week, gamestop.

You said it reminds you of a company called blockbuster, whose business model essentially became obsolete.

The stock pulled apart after the innings.

It is coming back pretty good, but you are not competent it is going to stay up.

I am not.

It really is just like blockbuster.

We know they are going to have to compete with walmart in brick-and-mortar stores.

I think the biggest headwind is the fact that next-generation consoles allow players to download games via the cloud.

They do not have to go through the store anymore.

The stock is down over 20% this year.

A terrible looking chart.

I do not see things looking any easier for gamestop, going forward.

Talk about your strategy in the options market.

The stock is pumping today.

The options market is implying a move of around $3.75 to $4 lower by may.

I can buy the puts bread for $.25. -- the put spread for 25 cents.

I could get 3-1 on my money.

Thank you so much.

General mellie joining us to

This text has been automatically generated. It may not be 100% accurate.

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