TLDR
- Keith Gill (Roaring Kitty) held a large options position in GameStop (GME) stock, consisting of 120,000 call options and 5 million shares.
- GME stock price surged last week, increasing the value of Gill’s position to around $340 million.
- However, GME stock crashed over 50% in the following two trading sessions, causing Gill to lose around $350 million.
- A meme cryptocurrency token called $GME, unaffiliated with GameStop, saw a massive 5000% surge but then dropped 16% as enthusiasm for GME stock waned.
- Analysts doubt GameStop’s ability to execute a successful turnaround strategy, suggesting the stock’s rally may be short-lived.
Keith Gill, the famous stock influencer known as “Roaring Kitty,” recently experienced a dramatic swing in his investments related to GameStop (GME) stock.
Gill held a massive options position in GME, consisting of 120,000 call options with a strike price of $20 and an expiration date of June 21st. Additionally, he owned 5 million shares of the company.
Last week, GME stock surged, causing the value of Gill’s options to skyrocket. At one point, his position was worth around $340 million.
This rally was short-lived, as the stock experienced a sharp correction over the following two trading sessions.
On Friday, June 9th, GME stock plunged by 40%, and on Monday, June 12th, it fell another 12%. This steep decline erased most of Gill’s recent gains, resulting in a loss of approximately $350 million within a matter of days.
The catalyst for the initial surge in GME stock was Gill’s highly anticipated livestream on Friday, where he reiterated his bullish stance on the company. However, the livestream failed to sustain the rally, and the stock began to tumble shortly after.
Analysts have expressed skepticism about GameStop’s ability to execute a successful turnaround strategy.
Michael Pachter, a GameStop analyst at Wedbush, stated that the company’s lack of a coherent strategy and previous failed attempts to revitalize its business operations cast doubt on its future prospects.
“We suspect that [Friday’s] live stream from influencer Keith Gill will keep shares elevated long enough for the company to complete its [at-the-market share offering], but with no clear strategy, we suspect the share price will once again begin to descend and approach our new price target,”
Pachter said in an interview with CNBC.
Amid the GameStop stock drama, a meme cryptocurrency token called $GME, unaffiliated with the GameStop corporation, experienced a massive surge of nearly 5000% since early June.
However, as enthusiasm for GME stock waned, the $GME token also took a substantial hit, dropping by 16% in the last 24 hours.
The $GME token’s trading volume plummeted by 43% to $116 million over the past day, in line with other meme coins like Notcoin, which tanked by more than 35% within the last week.
