At its highest back in 2021, GameStop's share price hit an all-time high of $120.75, adjusted for a subsequent stock split. At that peak, Gill's holdings in GameStop were worth around USD 48 million. Then the value of his position went down with GME. I assume he had to pay taxed at least on his option position. USD 174.5 million is a significant jump. He claimed in the live video on Youtube (which I did not watch) that it is his own money. Could it simply be leverage, so he could end up broke? Has he indicated how he got to USD 174.5 million? He should have just used his time to find and research a small cap stock and presented his research along with his position. That would have served him well.
Flash-in-pan trader, likely to fade into memory as just another would-be trader. Years ago, I worked for a person whom literally starting trading while in jail abroad, placing orders with lawyer. He caught a couple of huge bull markets, and prior to my meeting him, had built a 100- million stockpile. We are talking more than 50 years ago, when even 1 million was a lot of money. Almost no billionaires those days -- certainly not from trading. But I soon realized he knew little about proper trading, he just knew how to buy, and leverage. He had accounts virtually around the world, with a dozen or more brokerage houses -- and was always on margin call, in order to continue building his position. Eventually the bubble popped. His assets decimated. After I left his employ, and many years later, he wanted to meet. He asked to borrow some money. My guy was relatively quiet about his trading, but that was mostly because he was still wanted for some legal issues. But with Roaring Kitty -- and his like -- it is almost a sure sign of failure when one boasts about a position. Bill Ackerman finally leaned that lesson with Herbalife.
It is not mandatory for him to disclose all his trades to the public. If he were a day or swing trader, he should be a billionaire by now.
This is a good question, and something is fishy about what he shares. His last known position 3 years ago before his comeback was: (numbers are rounded) 200K shares for $55, current price was $155, value 35 MM. https://www.reddit.com/media?url=https://i.redd.it/n7m08253glt61.png Then the stock goes down for 3 years bottoming around $10, and suddenly his holdings are in the 200 MM range. His current holdings are 5 MM shares for $21 and 120 K June 21 $20 call options for $5.6. current value 235 MM. https://www.reddit.com/media?url=https://i.redd.it/xmolgvxows5d1.png ---------------------------------------------- After the stock maxing out at 150+, it dropped back in 3 weeks to 10, but had 2 huge rallies into the 80-90 range. So his timing must be really good if without shorting he was able to sell close to the top and get back into it at the bottoms.
I am guessing he has been trading stocks and options on GME the last 3 years. I never traded GME, and I have no proof, only a speculation, he ran up his account balance by trading the options, and then manipulating the fills on those options by selling or buying large amounts of the underlying shares moving the market and getting profitable option fills. I wonder if that is what the SEC is going after him for.
A couple of hedge funds bought GME which is what drove the prices up. They found out Steven Cohen had shorted GME, not by buying put options but, borrowing stock. Risk profile of that is unlimited to the upside. Hedge funds knew Steven Cohen was at the wrong side of the trade and pounced on it. Roaring Kitty and retail traders got credit for the stock running up. Not really. It was the big hedge funds who drove the share prices up and also, made the most monies. Roaring Kitty also, was subpoenaed and appeared before the US Congress. He did nothing wrong otherwise, he would not have been able to keep the $47 million (I could be wrong on the exact amount) profits he made on GME.
This is what my chart shows. Yet his reddit update showed $154.69 as current value, quite a big difference.
%% Good points; did not some other funds short it also ?? In particular, the one that borrowed from Ken Griffin to avoid bankruptcy. ?? Penny stock spike to dont know the ATH,or splits ,to many numbers. Glad to avoid that one , even with 20-20 hindsight. Local GME leased i guess,office was empty.