Hype around Pokemon Go and optimism regarding potential impact from an upcoming mid-cycle hardware refresh has pushed shares of GameStop higher by nearly 20% in the past month, Piper Jaffray analyst Michael Olson tells investors in a research note. He expects the rally to continue. Pokemon is pushing traffic into stores and creates an opportunity for GameStop to achieve or exceed its target of growing collectibles 50% in FY16, Olson contends. He also views virtual reality as a near-term catalyst for the company. The analyst keeps an Overweight rating on GameStop with a $41 price target.

Bullish option flow detected in GameStop with 44,913 calls trading, 1.9x expected, and implied vol increasing over 3 points to 96.82%. 4/26 weekly 11.5 calls and May-24 12 calls are the most active options, with total volume in those strikes near 7,700 contracts. The Put/Call Ratio is 0.10. Earnings are expected on June 5th.