Have you been following the GameStop saga? It’s super fun to watch. This past Sunday, Roaring Kitty aka u/DeepFuckingValue posted a screenshot of his portfolio on reddit as shown below. This guy owns 5M shares of GME and 120K contracts of GME calls expiring on June 21!!!!! In other words, this guy has $180M worth of GME securities plus $30M of cash. How could this be possible? Three years ago when he last updated his portfolio, he was *only* worth $34M with 200K shares of GME . He somehow 6Xed his portfolio in 3 years. After he posted his portfolio, GME stock further skyrocketed. GME closed at $46.55 yesterday, which makes his portfolio worth $500M+. This is so insane.
Part of this stock surge is that the counterparties that sold him the call options will have to deliver the shares if Roaring Kitty exercises his options. But it appears that the call sellers didn’t have all the 12M shares at hand. Then yesterday afternoon, Roaring Kitty announced he was going to do a live stream today at 12PM ET (see video above). GME stock surged again after hours to $60+. OMG Roaring Kitty will officially become a billionaire if GME stock price reaches $70.
Retail traders probably went to bed last night feeling really good expecting to make bank today. But this morning the company announced a new major share offering of 75M shares along with an early release of (mediocre) quarterly results. GME stock tanked and was halted many many times today. At 12PM ET, there were almost 500K people waiting for Roaring Kitty’s livestream. Roaring Kitty was fashionably late for about 30 minutes and he started his live stream with a pirate-like outfit shouting “Oh! Shit!”. I was in the livestream for a little bit but he didn’t really say much. He did show us his portfolio and confirmed he still has those 5M shares and 120K option contracts of GME. He kept saying what he is doing is risky and people shouldn’t copy him. The live stream ended up being quite underwhelming and anticlimactic. GME stock eventually closed at $28.22 today, down almost 40%.
I have to say this GME stock drama is super entertaining. It’s not over until those options expire so there are more episodes to watch in the next couple of weeks. It sounds fun but I will never trade Meme stocks like GME though. If I place a bet and lose, I will feel like an idiot. But if I do win, the dopamine hit could get me addicted. It’s a very slippery and scary slope. Unfortunately, chances are many wsb traders are currently addicted to trading NVDA and GME stocks/options. I like watching drama but I don’t like to get involved in drama. My life is boring as hell but I will live in peace while the wsb Meme stock traders will inevitably get hurt very badly from self-inflicted pains at some point.
