Roaring Kitty’s GameStop Options Move Raises Eyebrows on Wall Street

Roaring Kitty’s GameStop Options Move Raises Eyebrows on Wall Street

Category: News

Roaring Kitty's GameStop Options Move Raises | Mr. Business Magazine

The enigmatic investor known as “Roaring Kitty,” whose real name is Keith Gill, has made a significant maneuver in his investment strategy involving GameStop Corp. Recent screenshots from Gill’s Reddit account suggest that he has exited his entire options position in the company, while simultaneously increasing his holdings in GameStop shares. Specifically, Gill’s portfolio no longer includes the previously held 120,000 GameStop call options, set to expire next week with a strike price of $20. Instead, it now reflects a substantial increase in his common shares, rising from five million earlier this week to over nine million.

The transaction marks a notable shift in Gill’s investment stance, visible through the screenshots under his Reddit handle, “DeepF—-ing Value.” These images indicate a corresponding decrease in cash reserves, which plummeted from nearly $30 million on Monday to approximately $6.3 million. Such a reduction strongly suggests that Gill may have utilized a portion of these funds to bolster his stake in GameStop’s common stock.

Roaring Kitty- Market Reaction and Analysis

Following the disclosure, market activities surrounding GameStop’s options intensified. Trading data revealed a significant volume, with the $20 calls experiencing approximately 142,000 trades over Wednesday and Thursday. By the end of Wednesday’s trading session, the number of outstanding contracts had notably decreased by 34%, settling at 111,818.

During the same period, the $20 calls were actively traded between $6 and $9.80 as GameStop’s stock price surged by 14% to $29.12. This movement positioned Gill’s options well above his purported average purchase price of $5.6754 per contract. Financial experts, such as Danny Kirsch, Head of Options at Piper Sandler & Co., suggested that Gill might have sold 80,000 calls and exercised 40,000, thereby significantly increasing his holding in GameStop to nine million shares based on the latest Reddit screenshots.

Impact on GameStop and Investor Speculation

The flurry of trading activity coincided with GameStop’s scheduled shareholder meeting, which unfortunately faced delays due to technical difficulties with the livestream, according to company reports. Despite these setbacks, Gill’s actions, alongside his recent return to YouTube, have propelled GameStop’s share price to surpass $45. The company seized upon this surge by issuing $2.14 billion worth of shares to bolster its cash reserves.

As the options approached their expiration date, speculation mounted on Wall Street regarding Gill’s next move—whether he would opt to exercise the contracts to secure the shares or close out the position entirely. Gill’s cryptic online posts and periodic portfolio updates have continually attracted attention, fueling investor interest in GameStop shares over the past month.

In conclusion, Keith Gill‘s strategic adjustment away from GameStop call options in favor of increasing his stake in common shares has reverberated across financial markets, drawing both scrutiny and intrigue. His decisions, as reflected in Reddit screenshots, have not only impacted trading volumes and prices but have also underscored the evolving dynamics of retail investor influence in the stock market. As investors await further developments, the saga of “Roaring Kitty” and GameStop continues to unfold, capturing the attention of both amateur and seasoned investors alike.

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