As an investor, it is important to carefully consider your options when it comes to managing your investments. One individual who is currently facing a challenging situation regarding his investment in GameStop is Keith Gill, also known as Roaring Kitty. Gill holds a massive options position that is approaching expiration, and he must decide what course of action to take.
Gill currently holds 120,000 call options against GameStop with a strike price of $20 and an expiration date of June 21. With the stock trading around $30 a share, his options could potentially be “in the money” if the stock price rises above $20. However, Gill would need $240 million to exercise the options and purchase an additional 12 million shares at the discounted price.
Despite having $29.4 million in cash in his account, it is unlikely that Gill has enough capital to exercise all his options. His broker, E-Trade, may need to intervene and liquidate his options prior to expiration if he cannot come up with the necessary funds.
Gill also has the option to roll his calls to a further expiration date or start selling his options early to turn a quick profit. However, selling early could raise concerns about market manipulation and impact the stock price.
Ultimately, Gill faces a complex dilemma regarding his GameStop options, and he must carefully consider his next steps. As investors, it is important to stay informed about the risks and rewards associated with different investment strategies and to seek advice from financial experts when needed. Stay tuned for updates on this developing situation and make sure to visit Extreme Investor Network for more valuable insights on finance and investing.