It's impossible to time the top, but one thing you can say with certainty is that eventually the price of these stocks will come back down (because the underlying firm is clearly not worth its market cap).
Hence, the smartest bet here seems to be buying put options that expire far out. Currently, the price of the $320 GME PUT expiring in Jan 2022 is $240. That seems like free money?
Note that $240 is the price of a put for a single share, which are typically bought in increments of 100 with options. So buying a single one of those options requires $24,000. There are definitely people spending that kind of money over in WSB, for given the volatility nature of the meme stock, its a lot of money to put on the line for anyone not in the WSB mindset, or who isn't so flush with cash that that's a drop in the bucket.
Yea, it's definitely not a small amount, but at the same time, it seems like a very safe bet given the fundamentals of the underlying company. You're basically betting that the volatility will subside within 1 year.
If you're right, your ROI will be (320-240-X)/240 where X is the share price 1 year from now. If X is 30, ROI is 20%. Even if you're wildly wrong, and the share price is still $100 1 year from now, your ROI is only -9%.
Hence, the smartest bet here seems to be buying put options that expire far out. Currently, the price of the $320 GME PUT expiring in Jan 2022 is $240. That seems like free money?