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GameStop options trading surge indicates potential sale by 'Roaring Kitty'

Published 13/06/2024, 09:19 am
© Reuters

Investing.com - A sudden increase in trading activity involving short-dated GameStop Corp (NYSE:GME) options contracts on Wednesday has led some market observers to speculate that Keith Gill, the stock influencer also known as 'Roaring Kitty', may have sold part of his recently disclosed options in the company.

Gill, a key figure in the 2021 meme-stock phenomenon, had shared a screenshot on Reddit on June 2, revealing a significant GameStop stock and options position. The screenshot indicated that he held 120,000 GameStop June 21 call options at a strike price of $20, purchased for $68.1 million. It also displayed his ownership of 5 million GameStop shares valued at $115.7 million as of June 2.

On Wednesday, approximately 93,000 of the June call options were traded, with some transactions involving large blocks of 5,000 contracts or more. Whether these contracts were sold or whether Gill was involved in these trades could not be independently confirmed.

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Market data shows that the contracts were traded at an average price of $7.65 on Wednesday. Many transactions occurred below the bid price, suggesting a seller might have been attempting to unload the contracts.

GameStop's options volume soared to 1.2 million contracts on Wednesday, a 66% increase from the average daily volume over the past month.

Gill's options position has experienced significant fluctuations in recent sessions, with the value of the options position soaring to as high as $341 million before briefly dipping $7.5 million into the red on Tuesday.

GameStop shares closed the session down 16.5% at $25.46. However, the shares have seen a 45% increase for the year.

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