Keith Gill, also known as “Roaring Kitty,” has been making waves in the world of meme stocks. His recent disclosure of owning over 9 million shares of GameStop has raised eyebrows and sparked curiosity among investors. By increasing his ownership in GameStop’s common stock, Gill has solidified his position as a key player in the meme stock frenzy.
One of the intriguing aspects of Gill’s latest move is his handling of the 120,000 call options he previously held against GameStop. Call options provide the holder with the right to buy shares at a specified price by a certain expiration date. It remains unclear how Gill transitioned from holding call options to acquiring additional shares of GameStop. Speculation abounds regarding whether he sold off his call contracts or exercised them early to fund the purchase of more shares.
The sudden spike in trading volume of GameStop call contracts with a strike price of $20 and an expiration date of June 21 caught the attention of many market participants. This surge, coupled with a decline in GameStop’s stock and call option prices, led to speculation that Gill might be offloading his positions. The sheer volume of calls he held made it unlikely that he would retain them until expiration, prompting questions about his next moves.
For Gill to exercise all of his call options, he would have required a substantial amount of capital to take custody of the stock. With the total value of his portfolio, including cash, surpassing $268 million, Gill has showcased his financial prowess and strategic acumen in navigating the meme stock landscape. The recent surge in GameStop shares, which rose more than 14% on Thursday, further underscores Gill’s influence in the market.
Amidst the chaos surrounding Roaring Kitty’s investment activities, GameStop recently conducted an equity sale, raising over $2 billion. The company aims to utilize these funds for general corporate purposes, potentially signaling a shift towards acquisitions and investments. The disruptions faced during GameStop’s annual shareholder meeting due to overwhelming interest underscore the ongoing fascination with the company’s revival in the meme stock realm.
Keith Gill’s strategic moves and increasing ownership in GameStop have rekindled interest in meme stocks and highlighted the potential for significant financial gains in volatile markets. As the saga of Roaring Kitty continues to unfold, investors remain captivated by the unfolding narrative of one man’s impact on the stock market’s ever-evolving landscape.