Reddit user Keith Gill’s page shows GameStop rally inspiration ahead of a YouTube livestream from his laptop on June 7, 2024 at the New York Stock Exchange.
Michael Nagel | Bloomberg | Getty Images
Sell at game station Shares rose in afternoon trading Wednesday, coinciding with a surge in trading volume for call options owned by meme stock leader “Roaring Kitty.”
Roaring Kitty, whose legal name is Keith Gill, last disclosed his portfolio on Monday night, showing he still owned 120,000 call options contracts with a $20 strike price and an expiration date of June 21.
GameStop call options with exact strike prices and expirations traded as high as 93,266 contracts on Wednesday, more than nine times its 30-day average volume of 10,233 contracts. The price of these contracts fell more than 40% intraday, while the stock price plummeted 16.5%.
It’s unclear whether Roaring Kitty was indeed behind the large trading volume, but options traders said he may have been involved given that he is the majority owner of the contracts.
Playstation, 1 day
Options traders speculate that Gill must sell its calls before expiration or roll the position into another call option to avoid raising a large amount of cash when exercised on June 21.
Wall Street has been watching for signs that he is selling off the position, as it could affect the stock price.
For Gill to exercise his subscription rights, he would need $240 million to escrow the stock – 12 million shares at $20 each – more than what was publicly shown in his electronic trading account.
CNBC’s “Fast Money” will discuss GameStop’s move at 5 p.m. ET.
