‘Roaring Kitty’ is set to make millions on its GameStop options on Friday
The Reddit logo can be seen on a smartphone in front of a displayed Wall Street Bets logo in this image dated January 28, 2021.
Given Ruvic | Reuters
It could be a big payday for Keith Gill, the favorite of the Reddit trading people and the man who inspired the epic GameStop Short Squeeze.
Friday is the expiration date of Gill’s 500 call options contracts that he bought in early 2021. Gill – who goes from DeepF —— Value on Reddit and Roaring Kitty on YouTube – attracted an army of day traders who rallied stock and call options for stationary video games in the US, making the stocks into a single Week in January increased by 400%.
GameStop closed at $ 156.44 per share on Thursday, up 730% for the year. For example, suppose Gill still holds the contracts and sells them on Friday at a strike price of $ 12. He will earn more than $ 7 million on his position (the options cost the buyer a total of $ 10,000.)
It is unclear whether Gill has already closed his position at a profit. His last update on Reddit’s r / WallStreetBets forum was on April 1, showing 500 outstanding call options in a position greater than $ 8 million at the time. (The post hasn’t been independently verified by CNBC, so we’ll assume it’s his actual account.)
Gill also held 100,000 shares of GameStop, which he bought earlier this year for around $ 27 apiece. This can be seen from the screenshots he posts on Reddit. As of April 1, the stake gained more than $ 16 million. It wasn’t clear if he’d sold the shares that month.
The investor was a former Massachusetts Mutual Life Insurance marketer. Through YouTube videos and Reddit posts, Gill encouraged a group of retailers to drive out hedge fund short selling on GameStop.
The action got so wild at one point that brokers, including Robinhood, were forced to restrict trading in stocks as it blew up their clearinghouse margin. The mania also led to a series of Congressional hearings where Gill looked at brokerage practices and retail gamifying.
Gill owned 10,000 shares of GameStop at the end of 2020 and increased his stake to 50,000 shares in January and 100,000 shares in mid-February. Judging by the updates he posted on Reddit, he has not sold his GameStop stakes in the incredibly short time or in the period that followed.
The GameStop story is far from over. In addition to reviewing the retail saga, the company is itself in the midst of a transformation and hopes to capitalize on the massive price rally.
GameStop announced a $ 1 billion stock sale in early April to accelerate the transition to e-commerce led by activist investor and board member Ryan Cohen, co-founder of Chewy. The company also hired former Amazon and Google CEO Jenna Owens as its new chief operating officer.
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