RoaringKitty’s GameStop Position Surges by $78.6 Million in a Single Day

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As a crypto investor with experience in following the market closely, I’m both amazed and cautious about the recent developments surrounding RoaringKitty and the meme stock trading frenzy. The impact of his return to social media and disclosure of his large position on GameStop ($GME) has been staggering, with a surge in value of over $78 million in just one day.

Keith Gill, alias RoaringKitty on X and DFV on Reddit, has gained notoriety as the unsuspecting instigator of the meme stock trading craze that began in 2021, leading to a renewed wave of activity. His investments in GameStop (GME) experienced an unprecedented increase of $78.6 million within a single day.

Based on data from Lookonchain, I observed an intriguing trend: the day following RoaringKitty’s disclosure of his GameStop position on Reddit, the value of that holding increased by over $78 million, coinciding with a significant surge in the stock price.

On Reddit, RoaringKitty disclosed that I hold approximately 5 million shares of GameStop (GME) and 120,000 call options worth $20 each, with an expiration date of June 21. The total value of my position exceeds $210 million.

As a crypto investor, I watched with excitement as the value of my GME position escalated rapidly after I made it public. The stock price soared from approximately $22 to an astounding high of $40 before settling back down to its current trade at around $27.7 per share.

As a researcher, I’ve discovered that in the span of a single day, my gains on my investments in $GME shares and calls amounted to an impressive $78.6 million. Currently, I own approximately 5 million shares, valued at around $140 million, and 120,000 calls with a total worth of $120 million, all in the stock of #Gamestop ($GME).— Lookonchain (@lookonchain) June 4, 2024

Noteworthy is the fact that the meme stock trading craze gained momentum following RoaringKitty’s resurfacing on social media after a three-year absence, which occurred post-his testimony before Congress.

As a crypto investor, I’ve noticed an impressive surge in the stock price of AMC Entertainment (NYSE: AMC), the movie theater chain. Similarly, several less-famous cryptocurrencies have seen remarkable growth, which can be attributed to their association with Roaring Kitty and the GameStop saga.

As a researcher studying financial markets, I’ve observed an intriguing turn of events with GameStop’s stock price surge. This unexpected rise has resulted in substantial initial losses for short sellers who had previously wagered on its decline. According to Ihor Dusaniwsky, the managing director of S3 Partners, these short sellers, who had pocketed $392 million in profits earlier this year, faced a dramatic reversal of fortune, with potential losses reaching $852 million within just a few days following the renewed interest from retail traders on social media.

Steve Sosnick, Interactive Brokers’ chief strategist, spoke to The New York Times and shared that investors have been actively purchasing GameStop call options in large numbers, indicating their faith in the stock’s continued price surge.

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2024-06-05 01:50