It seems the periodic boom-and-bust cycle of meme stocks will not end as long as people like Keith Gill, who goes by the moniker Roaring Kitty on Reddit, are able to milk their massive following by repeatedly engineering short/gamma squeeze in GameStop and other retail-favorite names.
For the benefit of those who might not be aware, Roaring Kitty had played a pivotal role in unleashing the meme stock mania of 2021 by predicting a massive short squeeze in GameStop's shares at the time. The OG meme stock veteran also pocketed a sizable windfall from that saga, to the tune of around $30 million.
After remaining silent for the past couple of years, Roaring Kitty again returned to prominence in May when he posted a picture on the X platform that indicated he was getting ready for action. As we noted at the time, from the 30th of April onwards, someone had been accumulating out-of-the-money calls on GameStop, targeting strikes all the way to the $20 price level. After Roaring Kitty posted on X, GameStop shares sky-rocketed on the 13th of May, going as high as $48.75 (based on share closing price) in the following days before giving up most of those gains.
Roaring Kitty Reveals His GameStop Cards
— Roaring Kitty (@TheRoaringKitty) June 3, 2024
Just moments ago, Roaring Kitty again posted on X, this time depicting a reverse Uno card, perhaps as a symbol of GameStop gamma squeeze redux.
RoaringKitty/DeepF***ingValue value appears to be back on Reddit with ~$180 million in $GME stock and call options🤯
Tomorrow could get crazy https://t.co/F55dKMwvzp pic.twitter.com/o7zuH8qQdA
— Edwin Dorsey (@StockJabber) June 3, 2024
Simultaneously, Roaring Kitty also provided an update on Reddit, showing that he now holds around $65 million worth of $20 calls on GameStop along with over $115 million worth of shares and $29 million in cash. Given the fact that GameStop shares closed at $23.14 on Friday, Roaring Kitty's calls remain in the money.
HOLY SHIT!
I have been reporting on a GameStop, $GME whale buying $20 calls expiring June 21 over last seven days.
DeepFuckingValue aka RoaringKitty just disclosed he was the whale on Superstonk.
This is insane.
His position value is over $200 MILLION in $GME. pic.twitter.com/UtheyMxp9v
— unusual_whales (@unusual_whales) June 3, 2024
According to the reporting by Unusual Whales, someone has been buying GameStop calls with a $20 strike price and June 21st expiration over the past couple of days. Based on Roaring Kitty's Reddit post, we can reasonably deduce that the OG meme stock veteran was likely behind this buying spree.
Now we await Monday's trading session with bated breath. All signs point to another short/gamma squeeze in GameStop shares.
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