GameStop shares surge as ‘Roaring Kitty’ trader posts account showing $116 million position

Meme stock GameStop is rallying again on speculation Keith Gill, the man who inspired 2021’s epic short squeeze, could currently have a huge position in the video game retailer.

Gill, who goes by DeepF——Value on Reddit and Roaring Kitty on YouTube and X, reappeared Sunday night, posting a screenshot of what could be his portfolio holding a significant amount of GameStop common shares and call options.

The Reddit trading crowd’s favorite trader holds 5 million shares of GameStop worth $115.7 million as of Friday’s closing price, according to the account snapshot posted on Reddit’s r/SuperStonk forum. The account also showed a position of 120,000 call options in GameStop with a strike price of $20 that expire on June 21st that were purchased for about $5.68 each. GameStop shares closed Friday at $23.14.

The post was not independently verified by CNBC. Notably, he didn’t post on the infamous WallStreetBets chatroom where he posted all of his trade updates at the height of the GameStop mania over three years ago. Though the username is the same one used.

Around the same time Sunday night, Gill posted a cryptic picture of a reverse card in the game “Uno” on X, which quickly garnered near 30,000 likes.

Shares of GameStop jumped more than 19% in Robinhood’s 24-hour exchange Sunday evening, which allows for trading of certain stocks continuously. The stock could see a big pop when premarket trading starts at 4:00 a.m. Monday.

Gill’s first return to social media three weeks ago sparked an eye-popping rally in GameStop with shares more than doubling in May alone. At the time, he simply posted a picture of a man in a chair leaning forward, but that was enough to trigger a buying frenzy among amateur traders.

GameStop took advantage of the May rally by raising more than $900 million in a stock sale.

Stock Chart IconStock chart icon

GameStop, YTD

The investor was a former marketer for Massachusetts Mutual Life Insurance. In 2021, through YouTube videos and Reddit posts, Gill encouraged a band of retail traders to squeeze out short selling hedge funds in GameStop.

The action got so wild at one point that brokerages including Robinhood had to restrict trading in the stock as it blew up their clearinghouse margin. The mania also led to a series of congressional hearings, featuring Gill, around brokers’ practices and gamifying retail trading.

GameStop is still struggling with a transition to online gaming away from brick-and-mortar video game purchases with investors banking on CEO Ryan Cohen to eventually reinvent the company.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : CNBC – https://www.cnbc.com/2024/06/02/gamestop-jumps-as-roaring-kitty-trader-posts-giant-116-million-stock-position.html