Keith Gill, also known as “DeepF——Value” on Reddit and “Roaring Kitty” on YouTube, made headlines almost five years ago when he revealed a $53,000 bet in GameStop. Fast forward to today, and his net worth has skyrocketed to over $289 million. Gill’s ability to influence GameStop’s stock price through his online presence has been impressive, with his recent portfolio screenshot showing he still holds onto 5 million shares of GameStop and 120,000 call options despite a 21% rally.
Gill first shared his position in GameStop back in September 2019 with a humble $53,000 investment. His intention was to encourage retail traders to challenge hedge funds that were betting against the video game retailer. By April 2021, he had exercised his call options to own a total of 200,000 shares, significantly increasing the size of his positions. GameStop, on the other hand, has been struggling with its transition from physical stores to e-commerce, despite Gill’s initial belief in its value.
Michael Khouw, co-founder and chief strategist of OpenInterest.PRO, sees Gill’s trading style as unconventional and risky. He emphasizes that professional traders would not make the same moves as Gill, as the risks involved are unimaginable. In fact, there are reports that Morgan Stanley’s E-Trade broker is considering removing Gill due to concerns about market manipulation. CNBC was unable to confirm the details of Gill’s GameStop stake and portfolio, raising further questions about his trading activities.
Gill’s current options with a strike price of $20 that expire in June could potentially lead to him owning an additional 12 million shares if GameStop’s stock closes above $20. This would make him the fourth largest shareholder in GameStop, behind major institutional investors like Vanguard and BlackRock. However, exercising these options could put significant pressure on the stock, affecting its price and market dynamics.
If Gill exercises all his calls and ends up with 17 million shares, his stake would be worth $476 million at the current price of $28 per share. At GameStop’s recent peak of $64.83, his stake would reach a staggering $1.1 billion. While this seems like a lucrative opportunity, it comes with its own set of risks and challenges. Rolling these options to a further expiration date could be costly and impact his overall position in the stock.
As GameStop’s shares experience fluctuations and challenges, Keith Gill’s position in the company remains uncertain. While his rise from a $53,000 bet to a net worth of over $289 million is remarkable, the future of his GameStop investment hangs in the balance. Whether he will continue to hold onto his shares or make strategic moves to capitalize on his gains remains to be seen. The saga of Keith Gill and GameStop continues to captivate the investment world, showcasing the unpredictable nature of the stock market and the potential rewards and risks of high-stakes trading.