Keith Gill, the stock influencer known as "Roaring Kitty," has potentially amassed a profit of tens of millions of dollars on his GameStop options position. However, Reuters reported that experts think that getting these gains may take more work.
On Monday, June 3, GameStop's stock price jumped 21% after Gill's Reddit account posted a screenshot showing a $116 million bet on the video game retailer, per VCPost. The post also revealed a position of 120,000 GameStop June 21 call options with a strike price of $20, worth $65.7 million at Friday's close.
READ MORE : GameStop Shares Skyrocket as 'Roaring Kitty' Posts Massive $116 Million Bet on Game Retailer
Keith Gill's Profit
To support the Reddit post, Trade Alert data showed a massive increase in the number of open GameStop options contracts, from around 15,000 on May 19 to 145,000 by the end of May.
Based on an average trading price of $5.52 during that period, a buyer of 120,000 options contracts would have seen a profit of approximately $54 million on Monday.
Experts consider exiting such a large options position problematic, given the size of the bet and the heightened attention on GameStop. Selling even a portion of the options could draw major market attention, potentially impacting the price of both the options and the underlying stock.
At the same time, cashing out could damage Gill's reputation for having "diamond hands," a term used in meme stock communities to describe someone with a high-risk tolerance and an unwillingness to sell their holdings under pressure.
Gill has yet to release a statement on his decision regarding his profit from GameStop.
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