Noted investor Keith Gill, best known as “Roaring Kitty,” appears to have closed out his options position in GameStop, according to posts on his social media accounts on June 13. Gill then appears to have used the proceeds to raise his equity stake in the ailing video game retailer. The options sale netted Gill some cash and transformed a short-term stake into long-lived equity.
Here’s the approximate profit netted by Roaring Kitty on his options trade and the details on his new and enlarged ownership stake in GameStop stock.
The profit on Keith Gill’s GameStop trades
In early June, Gill revealed on social media that he had made a significant investment in GameStop, totaling about $181 million in value at the time.
It consisted of two parts:
- 5 million shares of GameStop stock purchased for $21.27, worth approximately $116 million at the time of the post.
- 120,000 June 2024 $20 call options purchased for about $5.68, worth nearly $66 million at the time of the post.
The options allowed Gill to purchase 12 million shares of GameStop stock at $20 per share by the June 21, 2024 expiration. Gill also had $29.4 million in cash in his account.
Gill closed his options position about a week before the contracts were set to expire, selling them outright or exercising them and receiving GameStop stock, or some combination of the two. He posted his account balance following the trade, which came to $268.45 million as of June 13, with a cost basis of $210.74 million on the GameStop stock position.
How much did Gill ultimately make on his options trade?
To figure Gill’s profit on the options, take this most recent cost basis and subtract the original cash of $29.4 million and the purchase price of the options, about $68.1 million. Then net out the original cost of five million shares, which were purchased at an average of $21.274.
That leaves a total of about $6.8 million in profit on the options, or a gain of about 10 percent on the $66 million basis. So in total, the sales price on the options was about $6.07 per contract. The options had been up hundreds of millions when GameStop was trading north of $45 per share.
Gill then increased his equity position, bringing that from 5 million shares of GameStop to 9,001,000 shares, as of June 13. His average price paid was about $23.41 per share, and he maintained $6.34 million in cash in the account.
Based on these figures, Gill will remain profitable on these recently announced stock and options transactions as long as the stock remains above about $21.94 per share.
Related: Meme stocks: What they are and why they’re making a comeback in 2024
Why is ‘Roaring Kitty’ investing in GameStop?
Gill held a livestream on YouTube on June 7 that explained his rationale for investing in the troubled retailer. In a rambling and unleashed broadcast, Gill spoke for about an hour on his investment to an audience that numbered more than 600,000 at one point, while sipping a beer.
Gill said that his investment in GameStop is based on the belief that the company is preparing for a turnaround under new CEO Ryan Cohen, who became chief executive in September 2023. Cohen started Chewy, a specialty retailer, in 2011, and then sold the company to PetSmart in 2017.
GameStop has quickly taken advantage of the renewed interest in its stock, following the release of a few cryptic messages from Gill on social media in May and then the revelation of his stock and options positions in June. The company raised hundreds of millions of dollars by issuing new shares of stock, giving it extra breathing room after years of losses.
While Gill sounded personally upbeat on the future of GameStop, he used a significant portion of the livestream to emphasize the risks of investing in the stock and options. He also clarified that he was not working with other investors, such as someone providing additional capital.
Gill was the most vocal cheerleader behind the social media frenzy that helped push GameStop “to the moon” back in late 2020 and early 2021.
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.
FAQs
The Bankrate promise
How much money did Roaring Kitty make from GameStop? ›
He initially purchased $53,000 worth of GameStop stock in 2019. At the height of the GameStop surge, Gill's stock was valued at $48 million. Gill retreated from public life in 2021, with no indication of what he's doing now.
What is happening with Roaring Kitty? ›
Keith Patrick Gill, known as "Roaring Kitty," has been thrust into the legal spotlight once again with a class action lawsuit accusing him of orchestrating a pump-and-dump scheme involving GameStop stocks.
Did Kitty ever sell GME? ›
Meme stock star Roaring Kitty, also known as Keith Gill, may have sold some of his GameStop holdings. The screen shot also showed he owned 5 million GameStop shares worth $115.7 million on June 2. On Wednesday, some 93,000 of the June call options changed hands, some of it in large chunks of 5,000 contracts or more.
Did Roaring Kitty buy more GME? ›
Stock trader Keith Gill, famous for his involvement in the GameStop (GME) short squeeze, has bought more shares of GME. Gill, known online as “Roaring Kitty” and “Deepf*ckingValue,” posted on June 13 that he bought another 4 million shares of GME.
What did Roaring Kitty do with options? ›
The options sale netted Gill some cash and transformed a short-term stake into long-lived equity. Here's the approximate profit netted by Roaring Kitty on his options trade and the details on his new and enlarged ownership stake in GameStop stock.
How did Roaring Kitty get so much money? ›
So, how did Roaring Kitty aka Keith Gill get all that money in the first place? stock and options. A follow-up screenshot from the now-legendary investor shows that position swelled to $260 million, with another $29 million in the bank.
How many shares does Roaring Kitty have? ›
The filing showed Roaring Kitty, whose legal name is Keith Gill, bought just over 9 million shares — amounting to a 6.6% stake in the company. That makes him the third-biggest Chewy shareholder, according to FactSet. Based on Friday's close, that stake is valued at more than $245 million.
Is Roaring Kitty still active? ›
The stonk king himself, Roaring Kitty, has returned to social media after a three-year hiatus by posting, you guessed it, memes.
Did Keith Gill sell his GameStop stock? ›
Gill “quietly sold and/or exercised (i.e., dumped) all 120,000 of his GameStop call options for a large profit, seemingly to increase his own stake in GameStop stock by over 4 million shares,” Radev said in the suit. GameStop shares have since fallen, though they're still higher than they were before Gill's posts.
What percentage of GameStop (GME) stock is held by retail investors? According to the latest TipRanks data, approximately 63.33% of GameStop (GME) stock is held by retail investors. Vanguard owns the most shares of GameStop (GME).
How many call options does Roaring Kitty have? ›
Meme stock champion Roaring Kitty, whose real name is Keith Gill, held onto his positions of 5 million GameStop common shares and 120,000 call options.
How much did Kim Campbell make from GameStop? ›
In reality, Kim Campbell is a nurse at the Davis Center of Psychiatric Medicine living in Los Angeles. Kim's investment in GameStop rose to as much as roughly $50,000 whereas Jenny's financial gains in Dumb Money soared to upwards of $500,000.
How much did Roaring Kitty pay for Chewy stock? ›
Roaring Kitty, whose legal name is Keith Gill, bought more than 9 million shares of Chewy last week, the Securities and Exchange Commission filing shows. Based on Friday's $29.05 closing price, that amounts to a value of over $261 million — making him the company's third-largest shareholder.
How much did Roaring Kitty lose on GameStop? ›
Roaring Kitty a.k.a. Keith Gill jokes about losing another $51 million on GameStop. Traders have closely followed GameStop shares' roller-coaster ride following the reemergence of the meme-stock trader known as Roaring Kitty.
Does Roaring Kitty still own Chewy? ›
Key Points. Keith Gill, aka Roaring Kitty, recently bought 6.6% of Chewy's outstanding shares. The online pet retailer is recovering from a post-pandemic hangover, but it has several growth opportunities. Its current valuation is appealing, especially given its growth prospects.
Did Roaring Kitty buy Chewy? ›
Keith Gill, aka Roaring Kitty, recently bought 6.6% of Chewy's outstanding shares. The online pet retailer is recovering from a post-pandemic hangover, but it has several growth opportunities. Its current valuation is appealing, especially given its growth prospects.
What was the highest GameStop sold for? ›
The all-time high GameStop stock closing price was 86.88 on January 27, 2021. The GameStop 52-week high stock price is 64.83, which is 214.1% above the current share price. The GameStop 52-week low stock price is 9.95, which is 51.8% below the current share price.
