ALL >> Business >> View Article
Gamestop Options Trade Nets $550k After Influencer's Post
A well-timed GameStop options trade delivered a significant $550K profit on Friday. This came after a cryptic social media post from "Roaring Kitty," also known as Keith Gill, a famous stock influencer. The post featured an altered image from the 1999 movie "Toy Story 2" with a dog's face on one of the characters. This was Gill's first social media activity in more than two months, triggering intense interest from retail traders.
GameStop shares surged as much as 9% after Gill's post, but later settled at a 4% increase. Just 18 minutes before his tweet, a trader bought around 10,000 GameStop call options, each with a $22.5 strike price. The cost of this trade was approximately $1.74 million. Shortly after Gill's post, this same trader sold two blocks of 5,000 contracts, netting around $2.20 million.
The quick turnaround resulted in a $550,000 profit, representing a 30% gain in just minutes. Market analysts have taken notice of this sudden trade, noting the high risk involved in buying short-dated options just before the weekend. "That's a lot of short-dated calls before the weekend," commented Brent Kochuba, founder ...
... of SpotGamma.
He noted the rapid move raised concerns due to the minimal time left for the options to expire. This isn't the first time Keith Gill has influenced stock prices. Back in June, a puppy photo he shared sparked speculation about Chewy, causing the stock to surge. His involvement in the GameStop saga continues to capture attention, especially following the dismissal of a lawsuit that accused him of manipulating the stock during the meme stock craze of 2021.
On the same day, Chewy shares also saw a modest recovery, up by 1.5% after an initial 4% drop earlier in the session. However, it remains unclear how long Gill's influence will continue to sway the market. His cryptic posts keep traders on edge, constantly speculating about his next move.
GameStop shares surged as much as 9% after Gill's post, but later settled at a 4% increase. Just 18 minutes before his tweet, a trader bought around 10,000 GameStop call options, each with a $22.5 strike price. The cost of this trade was approximately $1.74 million. Shortly after Gill's post, this same trader sold two blocks of 5,000 contracts, netting around $2.20 million.
The quick turnaround resulted in a $550,000 profit, representing a 30% gain in just minutes. Market analysts have taken notice of this sudden trade, noting the high risk involved in buying short-dated options just before the weekend. "That's a lot of short-dated calls before the weekend," commented Brent Kochuba, founder of SpotGamma.
On the same day, Chewy shares also saw a modest recovery, up by 1.5% after an initial 4% drop earlier in the session. However, it remains unclear how long Gill's influence will continue to sway the market. His cryptic posts keep traders on edge, constantly speculating about his next move.
Read More: https://luminarytimes.com/gamestop-options-trade-nets-550k-after-influencers-post/
Add Comment
Business Articles
1. Power Your Campaigns With The Comprehensive Usa Email ListAuthor: readymailingteam
2. Data Quality In Research: Why It Matters For Accurate Insights
Author: Philomath Research
3. What Every Startup Needs In The First Year
Author: successpreneurs
4. Why You Should Love Networking
Author: Icons Edge
5. Lucintel Forecasts The Global Conical Inductor Market To Reach $1 Billion By 2030
Author: Lucintel LLC
6. Lucintel Forecasts The Global Commerce Artificial Intelligence Market To Reach $6 Billion By 2030
Author: Lucintel LLC
7. The Rise Of Commercial Meatball Makers: A Game Changer For Food Businesses
Author: proprocessor
8. Lucintel Forecasts The Global Cloud Workload Protection Market To Reach $20 Billion By 2030
Author: Lucintel LLC
9. Dive Into The Digital Revolution: Strategies To Unlock Your Full Potential Today
Author: livewiredigitalmedia
10. Transform Your Space: How To Reimagine Your Kitchen As A Relaxing Bathroom Retreat
Author: a2zbuilds
11. Berry Bliss: 10 Must-try Strawberry Smoothies For A Cool Summer Treat
Author: frutinieves
12. "personalization At Scale: The Power Of Leadzen.ai’s Linkedin Automation"
Author: Leadzen.ai
13. Maximize Your Profits: The Ultimate Guide To Mastering Can Recycling
Author: denverscrapmetal
14. Lucintel Forecasts The Global Chromium Market To Reach $28 Billion By 2030
Author: Lucintel LLC
15. Lucintel Forecasts The Global Choke Inductor Market To Reach $2 Billion By 2030
Author: Lucintel LLC