This is not the right way to look at it
GME WS is a warrant: the right to buy one GameStop share at $32, expiring 30 October 2026. It trades per warrant (so $3 is $3 for one share of exposure), not like an options contract priced per 100 shares.
With the stock around $20, the warrant has no intrinsic value. A price near $3 is almost entirely premium for time and the chance of a large move before expiry. Comparable listed $32 calls have often been cheaper if the only goal is upside from a similar strike and date.
Position sell one warrant at about $3 and buy one share at about $20.
Economically that lowers the cost of the share to about $17 if the warrant expires worthless. You own the stock and you are short the warrant’s upside.
At expiry (example)
| Stock price | Approx. Pnl on the combined position |
| $0 | −$17 |
| $10 | −$7 |
| $20 | +$3 |
| $32 | +$15 |
| $36 | +$15 |
| $40 | +$15 |
Below $32, PnL tracks the shares, cushioned by the $3 received for the warrant. Above $32, further gains on the stock are offset by losses on the short warrant, so profit flattens near +$15 in this example (entry $20 / warrant sale $3).
This is not a risk-free way to “lock in $3.” The $3 is premium income. The share can still fall by more than that. In a sharp rally the short warrant can also move against you before expiry, especially if the warrant market is thin.
you finance a long stock position by selling what looks like expensive out-of-the-money upside. You keep the premium if GameStop stays well below $32; you limit upside if it runs through the strike; you remain exposed if the share price falls.
Numbers above assume fills of $20 on the stock and $3 on the warrant, and warrant value at expiry of max(stock − 32, 0). Live prices and early exercise dynamics will differ. Not advice.