CalBears96
Well-known member
It wasn't hedge fund or institution. RoaringKitty bought 120k calls at an average of $5.68. That's all him. Now he posted the screenshot to get fools to drive the price up so he could make a shit load on those calls.
NEW -> Contingent Buyer Assistance Program
“One way for Gill to get around this and still make money, options traders said, would be to short 12 million shares of GameStop before the options expire. An investor going short borrows shares and sells them in the hopes of being able to buy back the stock at a lower price in the future.
If GameStop’s share price is above the options’ $20 strike price at expiration, Gill could, in theory, exercise his options - buying the stock at $20 a piece and use the shares to close out his short position.
Using Monday’s closing prices, Gill would be selling the shares at $28 and exercising his options to buy them back at $20, netting himself about $8 per share, or $96 million.
"That would make it seem like he's still 'a diamond hands' and he's still going to make money," said Chris Murphy, co-head of derivative strategy at Susquehanna Financial Group.”
Source: https://www.reuters.com/technology/...up-millions-cashing-may-be-tricky-2024-06-04/
There were other bigger participants who entered shortdated GME 35c and 43c June 14 and 7 expiries, respectively, with considerable size this past week, opening roughly $500k+ and $1 mil worth of those contracts on 6/3 and 6/5 before Thursdays big move and Fridays dump.
"Sold everything including the home and put it in NVDA and currently going all in on margin beyond that. This one will not lose and clearly everyone needs to get on this train."
^^ Is this the part where we should be fearful when others are super greedy?
Maybe I am understanding the options incorrectly but don't you have to sell the options to realize the gains? The dude was down a quarter billion just today
qwerty
Well-known member
Correct
CalBears96
Well-known member
It's difficult to dump 120k calls at once, so he would have to try to keep the price up for some time, so he needed a lot of fools. Unfortunately for him, Gamestop reported earnings early and missed, AND wanted to dump more shares, so huge drop today.
GrowthStateofMind
Member
He can still short shares, then exercise his 20C 6/21 options contracts to get out according to this article from this past Monday:
“One way for Gill to get around this and still make money, options traders said, would be to short 12 million shares of GameStop before the options expire. An investor going short borrows shares and sells them in the hopes of being able to buy back the stock at a lower price in the future.
If GameStop’s share price is above the options’ $20 strike price at expiration, Gill could, in theory, exercise his options - buying the stock at $20 a piece and use the shares to close out his short position.
Using Monday’s closing prices, Gill would be selling the shares at $28 and exercising his options to buy them back at $20, netting himself about $8 per share, or $96 million.
"That would make it seem like he's still 'a diamond hands' and he's still going to make money," said Chris Murphy, co-head of derivative strategy at Susquehanna Financial Group.”
Source: https://www.reuters.com/technology/...up-millions-cashing-may-be-tricky-2024-06-04/
There were other bigger participants who entered shortdated GME 35c and 43c June 14 and 7 expiries, respectively, with considerable size this past week, opening roughly $500k+ and $1 mil worth of those contracts on 6/3 and 6/5 before Thursdays big move and Fridays dump.
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sleepy5136
Well-known member
RoaringKitty is a genius. I was initially concerned about this dude manipulating the direction of the stock and especially with his livestream event happening. Him being late 30mins and the stock dropping so hard is the nail in the coffin about him manipulating the stock. He was probably late on purpose.
momopi
Well-known member
"Sold everything including the home and put it in NVDA and currently going all in on margin beyond that. This one will not lose and clearly everyone needs to get on this train."
^^ Is this the part where we should be fearful when others are super greedy?
morekaos
Well-known member
Yes