The selling pressure on GameStop shares increased during Wednesday’s afternoon trading session, coinciding with a surge in trading activity on the call options held by the meme stock influencer known as “Roaring Kitty.”
During this period, the price of the GameStop contracts dropped by as much as 40% as it saw the stock price plummet by 16.5%.
The reason behind this backwards rally remains unclear. But, many experts believe that this has something to do with Keith Gill.
It’s worth noting that Gill’s portfolio showed that he still owned 120,000 call options in GameStop. As this was set to expire on June 21, he may be the reason for the spike in the trading volume.
It’s been speculated that Gill had no choice but to sell his calls. Otherwise, he would have needed to raise capital to exercise his calls later this week. Because of this, many on Wall Street have been waiting for Gill to offload his shares as it would negatively impact the stock price.
Gill needed at least $240 billion to exercise the calls, a figure that’s far more than what he has revealed in his E-Trade account.
Roaring Kitty’s most recent activities continue to captivate traders. This latest development is just part of the entire fiasco.