GameStop Stock Influencer ‘Roaring Kitty’ Faces Critical Deadline as Options Position Nears Expiration

NEW YORK – As GameStop’s stock price continues to fluctuate wildly, Keith Gill, also known as “Roaring Kitty” on YouTube, is facing a critical juncture in his options position. Gill, a prominent stock influencer, played a significant role in the meme-stock frenzy that captivated the markets in 2021. His substantial holdings in GameStop options briefly fell into negative territory as the stock plummeted by 8% on Tuesday. However, the value of his holdings rebounded later in the day, with GameStop finishing trading sessions up 23% at $30.49.

The rollercoaster ride of GameStop’s shares saw a 36% drop since its peak of $48 on Friday. This decline followed Gill’s livestream, which failed to rally the stock after the company’s unexpected announcement of a stock offering. Subsequently, GameStop disclosed a successful equity offering, raising approximately $2.14 billion through the sale of shares.

As of Monday, GameStop’s CEO, Ryan Cohen, held an 8.6% stake in the company, down from his previous 10.5% stake in May. The sharp movements in GameStop’s stock price translated into significant fluctuations in the value of Gill’s disclosed options position. Gill revealed holding 120,000 GameStop call options at a strike price of $20, purchased for $5.6754 per contract, totaling $68.1 million. Additionally, he disclosed owning 5 million GameStop shares valued at $115.7 million.

The value of Gill’s options contracts skyrocketed to $340.9 million but later dipped to $60.6 million on Tuesday, with the contracts eventually trading at $11.25 apiece, valuing his position at $135 million. Despite the short-term pressures posed by the contracts’ June 21 expiration date and their accelerated time decay, Gill reaffirmed his confidence in GameStop and its CEO.

Market analysts are closely monitoring the options market to gauge whether Gill seizes profits or adjusts his position before the contracts expire. Potential actions taken by market makers, such as selling shares to mitigate risks from sold call contracts, could further influence GameStop’s stock price in the near term. This uncertainty adds an element of volatility to the stock, with traders bracing for potential shifts in market dynamics.

In the high-stakes game of stock trading, Gill finds himself in a race against time as the expiration date of his options contracts approaches rapidly. The looming decision on whether to lock in gains or potentially acquire millions of GameStop shares underscores the complexities of navigating the financial markets with substantial positions on the line. As investors and observers remain vigilant, the future trajectory of GameStop’s stock price hinges on a multitude of factors, from market dynamics to individual decisions made by influential players like Keith Gill.