Roaring Kitty's GameStop options bet briefly underwater as shares extend fall
How did the value of Gill's GameStop options and shares respond to his livestream event, and what was the peak value reached by the options on the day of the livestream?
During Gill's livestream event, the value of his GameStop options and shares experienced fluctuations. The price of the options contracts soared as high as $28.41 on the day of the livestream, putting their value at $340.9 million. However, following the event, the stock has lost nearly 50% since Friday's high of $48. On Tuesday, the options contracts briefly changed hands at an average price of $5.50 a contract, putting the value of Gill's position at about $66 million, down about $2 million from their purchase price. With the shares last at $24.60, the contracts were trading at $6.65.
What specific options position does Keith Gill, known as Roaring Kitty, hold in GameStop, and what was the total investment amount?
Keith Gill, also known as Roaring Kitty, holds 120,000 GameStop June 21 call options at a strike price of $20. He bought these contracts at $5.6754 per contract, with a total investment amount of $68.1 million. In addition, Gill owns 5 million GameStop shares worth $115.7 million as of June 2.
What was the market price of GameStop shares and the trading price of the options contracts immediately following the recent decline?
Following the recent decline in GameStop shares, the stock price fell 8% to a low of $22.79 before paring losses. On Tuesday, the options contracts held by Keith Gill, also known as "Roaring Kitty," briefly changed hands at an average price of $5.50 a contract. With the shares last at $24.60, the contracts were trading at $6.65.