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06/07/2024 |

Roaring Kitty’s Return: The Most Anticipated Livestream…Ever?

Roaring Kitty Returns to the Spotlight

Keith Gill, better known as “Roaring Kitty” on X and YouTube and as “DeepFuckingValue” on Reddit, hosted his first livestream since the meme stock craze that took place three years ago. Gill said he believes in the video game retailer’s reinvention under CEO Ryan Cohen, reiterating his previous investing thesis and offering little new reasoning behind his large stake. He also revealed that he didn’t have any institutional backers and the GameStop positions he had shared in screenshots were his only bets. Shares of GME were halted multiple times during his stream.

GameStop Stock Takes a Hit

As of this post, the stock was down nearly 40% on the day as investors responded to the company’s earlier announcement that sales dropped significantly in the first quarter and that it was selling more stock, $75m worth, to be exact. Despite the drop, Gill remains optimistic about GameStop’s future. His confidence in the company’s turnaround under Cohen’s leadership was a key highlight of the livestream.

Gill’s GameStop Options

Despite today’s drop and a drawdown of $250m on his total position, the stock is still in the money for Gill to exercise his call options. He has 120,000 call options against GameStop with a strike price of $20 that expires June 21. The notional value, if exercised, would be $240 million worth of stock bought at $20. That means Gill needs to have $240 million to take custody of the stock after exercising the calls. Needless to say, we are all on the edge of our seats