Keith Gill, also known as “Roaring Kitty” posted an update on Reddit (NYSE:RDDT) that showed that he now owned 9 million GME shares. This is higher than his previous holding of 5 million shares at the start of the week.
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Based on the closing price of GME stock of $29.12 on June 13, Gill’s stake is valued at $262.1 million. This pegs Gill’s GME stock holding at 2.1% of its 426 million total outstanding shares.
What About Roaring Kitty’s Previous Call Options?
Gill, a key figure in the 2021 meme-stock surge, posted a Reddit screenshot on June 2 showing his large GameStop holdings. This screenshot showed that Gill had 120,000 call options with an expiration date of June 21 at a $20 strike price, bought for $68.1 million. He also owned 5 million GME shares valued at $115.7 million.
The new update from Roaring Kitty showed that he no longer held 120,000 call options. It is not clear how Gill reached this position. He might have sold all 120,000 call contracts to buy more shares or sold some options and exercised the rest early.
A call option involves a contract where the seller grants the buyer the right (but not the obligation) to purchase the underlying asset at a pre-specified price (strike price) by a specific date (expiration date).
Is GME Stock a Good Buy?
Only one analyst has covered GME stock over the past three months and has a Sell rating with a price target of $11 on the stock. This GME price target implies a downside potential of 62.2% at current levels. Year-to-date, GME stock has surged by more than 60%.
