GameStop’s recent share price volatility has captured the attention of investors as Roaring Kitty, also known as Keith Gill, continues to hold call options against the stock. With 120,000 call options at a strike price of $20, Gill’s notional value could reach $240 million if exercised. Despite GameStop’s 40% drop in share price, Gill’s options remain in the money.
While hosting a livestream, Gill ended the session after about 50 minutes, causing GameStop shares to plummet. The stock’s decline of over 40% marked one of its worst sessions since 2021. Other meme stocks also suffered losses in sympathy with GameStop’s downtrend.
During the livestream, Gill stated that he doesn’t have a lawyer present and that his positions in GameStop are his only bets in his portfolio. He emphasized that his aggressive style of investing may not be suitable for everyone. Gill also mentioned that GameStop is now in the second stage of his thesis, focusing on the company’s reinvention and CEO Ryan Cohen’s leadership.
Despite speculation that Gill may have institutional backers, he clarified that his GameStop positions are solely his own and that he is not working with anyone else. He also disclosed that he has not watched the movie “Dumb Money,” which chronicles the GameStop meme mania.
Gill’s livestream, which attracted over 600,000 viewers, lacked a set agenda, with Gill stating that he had no real game plan for the session. The stream marked Gill’s return to social media after a recent GameStop rally and the release of the movie “Dumb Money” in 2023, which portrayed his involvement in the stock’s surge.
Prior to Gill’s livestream, GameStop posted its fiscal first-quarter earnings ahead of schedule, revealing a decline in net sales and a narrower loss compared to the previous year. The company also announced plans to sell an additional 75 million shares on top of a previous 45 million share sale.
Gill’s GameStop bet has resulted in significant paper profit, with his portfolio increasing by more than $375 million from Sunday to Thursday. If Gill exercises his call options, he could become the fourth largest shareholder in GameStop. However, the stock’s recent drop could impact his paper profits, leading to speculation about his future strategies in managing his positions.
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