Meme mania back on: GameStop doubles after $200M position revealed on Reddit
Keith Gill’s Reddit account is suddenly lighting back up in a big way.
Shares of GameStop more than doubled overnight after a Reddit account associated with Keith Gill showed stock and derivative positions in the retailer worth over $200 million.
The u/DeepFuckingValue reddit account posted a screenshot of a brokerage account showing a 5 million shares of GameStop and a bullish options bet that the stock will be above $20 by June 21 that enables the holder to accumulate up to another 12 million shares.
If such an option position, which is well in-the-money, was converted into shares, that account would hold 17 million shares of GameStop, or just under 5% of the company. According to Bloomberg data, that options position amounts to more than 80% of contracts outstanding for that expiry. This position appears to have been accumulated between May 20 through May 31 during a period in which GameStop traded as low as $17.70 and as high as $26.66.
More than $500 million in GameStop stock has changed hands during the pre-market session, through 8:00am ET. Other meme stock favorites including AMC Entertainment and Faraday Future Intelligent Electric are up more than double digits early on Monday.
This post was made on the Superstonk subreddit, while prior ones had been posted to r/wallstreetbets. At the time of publishing Sherwood News could not confirm the authenticity of this screenshot. The previous update from April 2021 showed the account owned roughly 0.3% of shares outstanding at that time, and held roughly $35 million in cash and GameStop stock.
The post on this subreddit coincided with a separate post on TheRoaringKitty’s X account of an Uno reverse card. This may be an affirmation of the theory that the string of clips posted in May were meant to be watched in reverse.
— Roaring Kitty (@TheRoaringKitty) June 3, 2024
Let’s see how long it takes GameStop’s management to put together another shelf offering this time after raising $1 billion during the stock’s advance in May.
