Roaring Kitty's GameStop Investment: 5 Million Shares and $65 Million in Call Options Boost Stock Price

Boston, Massachusetts, Massachusetts United States of America
GameStop's market capitalization has grown to over $8 billion as of June 3rd, 2024.
GameStop's stock price soared in premarket trading after Roaring Kitty's investment was revealed.
Roaring Kitty also has significant investments in SunPower Corp., Beyond Meat Inc., BlackBerry Ltd., and Reddit Inc.
Roaring Kitty gained notoriety during the 2021 meme-stock mania for his large positions in companies like GameStop and AMC Entertainment Holdings Inc.
Roaring Kitty (Keith Gill) holds 5 million shares of GameStop worth $115.7 million and 120,000 call options with a strike price of $20 expiring on June 21st.
Roaring Kitty's call options give him the right to buy GameStop shares at $20 each before June 21st.
Roaring Kitty's GameStop Investment: 5 Million Shares and $65 Million in Call Options Boost Stock Price

GameStop, the video game retailer, experienced a significant surge in its stock price after it was revealed that a prominent Reddit user, known as Roaring Kitty or Keith Gill, had taken a large position in the company. According to multiple sources,

Roaring Kitty posted screenshots of his investment portfolio on Reddit showing that he held 5 million shares of GameStop worth $115.7 million and 120,000 call options with a strike price of $20 expiring on June 21st. The call options were purchased for approximately $5.68 each.

The news sent GameStop's stock price soaring in premarket trading, with shares up by over 73% at one point. The surge came after a three-year absence from the platform for Roaring Kitty, who gained notoriety during the 2021 meme-stock mania for his large positions in companies like GameStop and AMC Entertainment Holdings Inc.

The call options give Roaring Kitty the right to buy GameStop shares at $20 each before June 21st. If the stock price is above $20 on that date, he can sell his shares for a profit. The potential gain from these options alone is worth over $65 million based on current prices.

GameStop's market capitalization has grown to over $8 billion as of June 3rd, 2024. The company has been struggling to transition from brick-and-mortar sales to online gaming in the face of increasing competition from digital platforms and e-commerce giants like Amazon.

Roaring Kitty's investment in GameStop is not the only large position he holds. He also has significant investments in SunPower Corp., Beyond Meat Inc., BlackBerry Ltd., and Reddit Inc.

The surge in GameStop's stock price comes amidst a broader trend of meme-stock mania, with other companies like AMC Entertainment Holdings Inc. and Bed Bath & Beyond also experiencing significant price increases due to retail investor interest on social media platforms like Reddit.

It is important to note that investing in individual stocks carries risk, and past performance is not indicative of future results. It is always recommended to do thorough research before making any investment decisions.


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Confidence

90%

Doubts
  • It is unclear if Roaring Kitty's investment in GameStop is a recent development or if it was made before the surge in stock price.
  • The article does not provide information on the source of the multiple sources mentioned.

Sources

91%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

GameStop shares surge 73% in premarket after ‘Roaring Kitty’ trader posts account showing $116 million position

CNBC News Yun Li Monday, 03 June 2024 02:09
  • Unique Points
    • Keith Gill, also known as Roaring Kitty, posted a screenshot of his portfolio showing a significant position in GameStop with 5 million shares worth $115.7 million and 120,000 call options.
    • GameStop shares surged 73% in premarket trading on speculation of Gill’s potential large position.
    • Gill’s account snapshot was posted on Reddit’s r/SuperStonk forum and the stock jumped after Robinhood’s 24-hour exchange allowed for continuous trading.
    • The call options have a strike price of $20 that expire on June 21st and were purchased for about $5.68 each.
    • GameStop closed Friday at $23.14 and Gill’s position is worth over $127 million based on current prices.
  • Accuracy
    • Keith Gill posted a significant position in GameStop with 5 million shares worth $115.7 million and 120,000 call options.
    • GameStop shares surged 73% in premarket trading on speculation of Gill's potential large position.
    • Gill's account snapshot was posted on Reddit’s r/SuperStonk forum and the stock jumped after Robinhood’s 24-hour exchange allowed for continuous trading.
  • Deception (80%)
    The article reports on the potential large position of a specific individual in GameStop stocks without providing any factual evidence other than a screenshot from an unverified source. This is selective reporting and emotional manipulation as it creates hype around the potential position of this individual, which could influence readers to make investment decisions based on speculation rather than facts.
    • The Reddit trading crowd's favorite trader holds 5 million shares of GameStop worth $115.7 million as of Friday’s closing price.
    • Shares in premarket trading were 73% higher at 5:10 a.m. ET, after soaring 90% earlier in the morning.
  • Fallacies (85%)
    The article contains inflammatory rhetoric and appeals to authority. It also uses a dichotomous depiction of GameStop's situation.
    • . . . the man who inspired 2021's epic short squeeze, could have a huge position in the video game retailer.
    • Gill, . . . 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.
    • GameStop took advantage of the May rally by raising more than $900 million in a stock sale.
    • The mania also led to a series of congressional hearings, featuring Gill, around brokers' practices and gamifying retail trading.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

94%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

GameStop Shares Double as Gill Post Shows $116 Million Bet

Yahoo Finance Sangmi Cha Monday, 03 June 2024 09:33
  • Unique Points
    • GameStop shares more than doubled after a Reddit account named DeepF— Value posted a $116 million position in the game retailer
    • The position included five million shares bought at $21.27 apiece and 120,000 call options worth $65.7 million due to expire on June 21
  • Accuracy
    • GameStop shares surged 73% in premarket trading on speculation of Gill's potential large position.
    • Keith Gill (Roaring Kitty) posted on Reddit revealing he holds $181.4 million worth of GME stock and call options.
  • Deception (80%)
    The article reports on the apparent large investment in GameStop shares by a Reddit user named Keith Gill, also known as Roaring Kitty. The authors do not make any editorializing or pontification statements. They do quote Robert Lea, a Bloomberg Intelligence analyst, but that is not considered deception since it is disclosed and does not add the authors' opinions. The article also reports facts about the stock prices and market capitalization of GameStop and other companies mentioned. However, there are some instances of selective reporting as the authors focus on Gill's investment in GameStop without mentioning his previous calls for investors to buy the stock, which could give a more complete picture of his actions. Additionally, there is some sensationalism with phrases like 'meme-stock mania' and 'excessive over exuberance,' but it does not significantly impact the overall article.
    • The authors focus on Gill's $116 million position in GameStop without mentioning his previous calls for investors to buy the stock, which could give a more complete picture of his actions.
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

89%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

GameStop Soars 300% After Roaring Kitty Secures Major GME Call Options

CoinGape Bhushan Akolkar Monday, 03 June 2024 05:23
  • Unique Points
    • Keith Gill (Roaring Kitty) purchased 5 million GME shares for $115.7 million and invested $65.7 million in call options.
    • Gill posted on Reddit revealing he holds $181.4 million worth of GME stock and call options.
    • GME surged by 19.19% in 20 minutes on Robinhood’s overnight markets after Gill’s Reddit post.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (95%)
    The article contains an appeal to authority fallacy in the form of a quote from Roaring Kitty, who is presented as having significant influence on the price of GameStop stock. However, this does not necessarily mean that the author endorses or agrees with Roaring Kitty's statements. Additionally, there are no other obvious fallacies present in the article.
    • GameStop ($GME) stock price saw a significant rise of over 19% in overnight trading after Gill posted on Reddit, revealing he is holding $181.4 million worth of GME stock and call options.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (0%)
    The author Bhushan Akolkar has a significant financial interest in the topics GameStop ($GME) and meme coins as evidenced by multiple mentions of these topics throughout the article. The author's site, Coingape, also covers cryptocurrency extensively.
    • GameStop Soars 300% After Roaring Kitty Takes Huge GME Call Options
      • Roaring Kitty Secures Major GME Call Options
      • Author Conflicts Of Interest (100%)
        None Found At Time Of Publication