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GameStop (GME) shares set for more volatility after Keith Gill aka Roaring Kitty reveals $116-M position

why is gamestop stock up on monday

GameStop Corp. (GME) shares are expected to experience significant volatility at Monday’s opening after a notable figure from the 2021 meme-stock mania, Keith Gill, posted on Reddit revealing what appears to be a $116 million position in the stock.

Known by his Reddit handle DeepF—ingValue and his social media persona Roaring Kitty, Gill’s re-emergence has already impacted GameStop’s stock trajectory.

Massive holdings and call options detailed

On June 2, Gill posted a screenshot on Reddit showing his substantial investment in GameStop.

The screenshot displayed a holding of five million shares purchased at $21.27 per share, amounting to approximately $115.7 million.

Additionally, Gill revealed he holds 120,000 call options, valued at $65.7 million, with a strike price of $20 per share set to expire on June 21.

These options were reportedly bought at $5.68 each.

While the authenticity of the screenshot remains unverified, its impact on the market sentiment is undeniable.

GameStop shares, which closed at $23.14 on Friday, have surged over the past month, partly due to Gill’s renewed activity on social media platforms.

Market impact and investor reaction

The reappearance of Gill, a central figure in the 2021 GameStop saga, has rekindled investor interest in the stock.

His strategic moves and public disclosures were instrumental in driving the stock’s meteoric rise during the meme-stock frenzy.

Gill’s recent activity, including posting an image of a green “reverse” card from Uno on X (formerly Twitter), has generated considerable buzz and speculation among retail investors.

GameStop shares received an additional boost last week following the company’s announcement of completing a roughly $933.4 million equity offering through the sale of 45 million shares.

This capital raise is expected to strengthen GameStop’s financial position and support its ongoing transformation efforts.

GME shares impact on markets

Gill’s substantial stake in GameStop and his influence over retail investors highlight the ongoing impact of social media on stock market dynamics.

The meme-stock phenomenon, driven by retail investors’ collective actions, continues to challenge traditional market fundamentals and regulatory frameworks.

As GameStop’s shares prepare for a potential rollercoaster ride, market analysts and investors will closely monitor the stock’s performance and Gill’s next moves.

The post GameStop (GME) shares set for more volatility after Keith Gill aka Roaring Kitty reveals $116-M position appeared first on Invezz

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