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GameStop stock has been on a days-long plunge that could soon mean losses for Roaring Kitty’s portfolio.
The video game retailer closed out Monday with its stock down 12%, at $24.83 per share. That’s inching closer to the $20 strike price on the call options owned by GameStop booster and retail investor Keith Gill, better known by his social media persona “Roaring Kitty.”
In a screenshot of his portfolio posted on the Reddit forum r/Superstonk last week, Gill (who goes by DeepF———Value on the platform) revealed that he owns 120,000 in GameStop call options expiring June 21. He bought the call options at $5.68 per contract, or $68.1 million.
The strike price refers to the price at which a put or call option can be exercised. When the stock price equals the strike, the option contract no longer has any intrinsic value.
With just 10 more days left to exercise the call option, and the retailer’s stock and options prices continuing to plunge, Roaring Kitty stands to lose out on millions. This means he will likely have to make a move in the short term.
GameStop stock was down about 1% in pre-market trading on Tuesday morning.
Brent Kochuba, founder of analytic service SpotGamma, told Reuters that Gill “kind of blew it” by not acting when the options rose during his closely watched livestream on Friday. GameStop shares plunged 40% on Friday following Gill’s first YouTube livestream in almost three years, seen by more than 600,000 viewers. The shares ended Friday down 39%, to $28.22 per share
An updated version of Gill portfolio posted on Monday showed that the total value of his options was $81.9 million after the contracts closed down almost 30% at $6.81 each. The value of his call options is still up 20%.
He also stands to lose out on his stock holdings. Gill owns 5 million GameStop shares, with a value of $124.15 million as of Monday’s closing price — an almost 17% gain from his purchase price of $21.27. But with the stock price inching downward, Gill could also see his holdings go into the red.