How Did Roaring Kitty Amass His Huge Stock Position, Including $65M Call Options, In Gamestop, GME?
'Roaring Kitty' Reveals Massive GME Position On Reddit, Including $65M Call Options. The Benzinga Premarket Prep team discuss.
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00:00Let's get to the story of the day.
00:02And AB, bring us into this because there's one stock here, and it's not NVIDIA.
00:07That is just having an incredible morning here.
00:10Give us the details here, Roaring Kitty style.
00:13Yeah.
00:14So last night, let me get the exact time stamp.
00:17It was at 8.02 PM Eastern.
00:20Roaring Kitty made another post on Twitter.
00:22Let me go ahead and share this.
00:23That's wild time.
00:24That's right when the Robinhood markets opened.
00:26Yeah.
00:27Yeah.
00:28And I didn't know.
00:29That is no coincidence.
00:30That is no coincidence.
00:31No question.
00:32I didn't know exactly what this meant because it was the Uno reverse card.
00:37At first I was like, oh my God, did he go short GameStop?
00:40You know, like I was like, this is going to be the craziest thing of all time if he went
00:45short GameStop because the reverse card, I didn't know what it meant.
00:48And then like a minute later, you see that not only in like the Twitter post was one
00:52thing, but we've seen it.
00:53We've seen Roaring Kitty active on Twitter in the past few weeks.
00:57You know, helped get GameStop going again a couple of weeks ago, but that wasn't really
01:00the big news.
01:01The big news was here.
01:04Roaring Kitty posted back on Reddit, his first Reddit post in like three years since June,
01:10since 2021, that he opened a new position on GameStop and a pretty big position as well.
01:18More than a hundred million dollars showing that he's already up six million dollars.
01:22$174 million.
01:23It looks like price paid.
01:25Yeah.
01:26Is that correct?
01:28Well.
01:29It says total price paid.
01:30Go to that post there again.
01:31Yeah.
01:32Here we go.
01:33It's the total.
01:34So bring that up.
01:35Make it big.
01:36I can't read.
01:37I'm old.
01:38I'm old.
01:39I can't see that.
01:40Joel's getting old too.
01:41I am old.
01:42Let me try to zoom in here a little bit.
01:44You had it good before.
01:45Whatever you did before was fine.
01:46I just want to read those numbers closely.
01:49So here, I'll give you the numbers.
01:50So this was his previous last post on Reddit was in April 2021, three years ago, and it
01:57looks like he had just over a little bit more than $11 million price paid.
02:02Now that number is more than 10 times higher at $174 million, he's showing his position
02:07that he's got June 21st calls that expires.
02:12It's like the June monthlies.
02:14This month, $20 calls on GameStop and he posts the trade on Reddit and the stock just starts
02:20going crazy.
02:21And so a lot of people are asking questions.
02:24How did he get this much money that he bought 5,000 shares of GameStop and that he bought
02:28this many, he bought $65 million worth of calls.
02:32He bought more than $110 million worth of the common stock.
02:36It's showing, let's see.
02:37It's showing the value here.
02:38I don't understand this.
02:39Oh, his cash total is still at around $30 million.
02:43So there's a lot of questions about how does he have this much money?
02:46Because if you go back and look at his trades from three years ago, from all accounting
02:52and reporting, it looks like he made maybe around $50 million from that.
02:56Now leave this up.
02:58This is good.
02:59So go here.
03:01So this was his last post on April 16th, 2021.
03:05And the total in the bottom column is showing what he has there.
03:09It's showing he has $3 million in cash and about $34 million.
03:13Correct?
03:14Yep.
03:15Am I reading that right?
03:17No, no, no.
03:18Hold on.
03:19Sorry.
03:20It's showing on the bottom.
03:21It's showing the post from April 16th, 2021, because what we're trying to do is come up
03:24with the math, how he's got $200 million all of a sudden.
03:27It's showing that he's got about $3.5 million in cash, $35 million total in the position.
03:33So if we go to April 16th, 2021, the stock was around $67.
03:39It never went higher than that.
03:41It never, Joel, it never ever after that point went higher than that.
03:46And April 16th of 2021.
03:49When he posted here, you see the date.
03:51Look at the screen.
03:52Okay.
03:53Yep.
03:54Yep.
03:55April 16th, 2021.
03:56If you look at where GME was trading, that was well after it made the 120 high.
03:59The highest it really went after that, well, you know, maybe it went $80.
04:03It may have went up to slightly there, but it never went up much after that.
04:08Never went up much after that.
04:10So my question, just questioning, not selling anything out here yet.
04:14How did he go from having, if it was all in a GME, how did he go from $34 million to
04:22having $174 million?
04:24Where did the other $140 million come from?
04:28I think you're going to have to write an article on this, Benzinga.
04:31Where did that money come from?
04:34My question, and I'm just, you know, questioning, have we seen physically roaring kitty?
04:40Have we seen Keith Gill himself come out with anything like a video saying these accounts
04:47are my accounts, that this is me, that these memes getting posted are me?
04:53I don't think so.
04:55All we know is there's been a bunch of memes posted from his social media accounts.
05:00And now there's all of a sudden an account that's showing an extra $140 million from
05:04where it was three years ago.
05:05I mean, maybe he took all his GME money and put it in NVIDIA.
05:09Now he's put it back in GME and he made a whole bunch of money.
05:11But I highly doubt that.
05:13I highly doubt that.
05:14So somehow, somehow he's basically five times his money between 2021 and 2024 without GME
05:24going higher.
05:26Is there a possibility, Chad, that he has actually indeed sold his social media accounts
05:32to a hedge fund and that hedge fund is now running these social media accounts?
05:38Because there's been no Keith Gill.
05:40So if Keith Gill comes out and says, this is me, this is me, that theory is thrown away.
05:46How do we know this is really Keith Gill?
05:50That is my question.
05:51How do we know this is really Keith Gill?
05:52And the numbers, the math that you're showing there right now does not add up.
05:58The math does not add up, folks, $34 million to the $174 million that he just invested
06:04in GME.
06:05That's assuming he didn't sell a dime, never spent anything, never bought anything, never
06:09sold a share.
06:11But even if he didn't sell a share, how did it go from $34 million to $174 million for
06:15him to put that kind of money in there?
06:17That's what I don't understand.
06:20Maybe again, and again, I'm going to tick some people off here because they want to
06:25believe this is Keith Gill, they need him to believe the stock's flying off of this
06:29news that Keith Gill's back in.
06:31I just don't get the math.
06:33I don't understand the math.
06:34That's my only question.
06:35I don't understand the math.
06:37See people saying, what the hell is this guy talking about?
06:39Nobody cares.
06:40I'm just saying there's a possibility, and it's a non-zero possibility, that this may
06:43not actually be Keith Gill.
06:46Chris Camillo from Dumb Money, thinking along the same lines as me, he actually tweeted
06:50at Elon Musk, can you confirm that this is Keith Gill's account?
06:53So I'm not the only person saying this, but I'm doing the math here right now, folks.
06:57I'm a math guy.
06:58He had $34 million on April 16th, 2021.
07:01Now all of a sudden he has $174 million to invest, and he has a lot more today because
07:05those calls are going to be worth a lot more.
07:07He's talking to have like a billion dollars at the end of the day probably here.
07:10I didn't add up his position, but it's going to be a lot of money he's going to be making
07:12on those calls here today.
07:13Maybe it's not a billion.
07:14He can go figure it out.
07:15I didn't bother doing the math.
07:16But he's making a lot of money today.
07:18Whoever's behind this account is making a lot of money today.
07:20I'm just saying there's a possibility that this is not Keith Gill.
07:25And if it is Keith Gill, where did the other $140 million come from?
07:29Please answer that.
07:30Yeah.
07:31I mean, I think right now we have to talk just about the implications of the post, what
07:38it's doing to the stock, but I think raising fair points and good questions, Dennis.
07:44And obviously, what do you think the price tag would be for him to have sold his social
07:50media accounts?
07:51If say, I don't know, I'm not going to throw any hedge fund names out there that would
07:55do that, but if they come up to him and it's been a couple of years since he made his GameStop
07:59money and they say, hey, we'll give you $5 million for your account, knowing they could
08:04make a lot more than that.
08:06Yeah, they didn't offer him $5 million, no, no, no.
08:09Why not, Joel?
08:10Who cares?
08:11Oh, I'm saying $10 million.
08:12I mean, I wouldn't- Even if he made it, but saying the possibility
08:17was there.
08:18Yeah.
08:19Like $5 million, $10 million, $2 million, $1 million, he knows what he sold.
08:22He wouldn't have sold it for $1 million, I don't think, because he just made $34 million.
08:25I mean, somebody is making hundreds of millions of dollars today.
08:30Somebody.
08:31It may be Keith Gill.
08:34Maybe it's Keith Gill.
08:35Maybe it's not, though, too.
08:37We don't know.
08:38Keith Gill comes out with a video on Reddit, then that theory is in the garbage.
08:42I'm just saying we don't know with 100% certainty at this point in time that's Keith Gill.
08:47It's an incredible move, GME up 80% here today, it's an incredible move.
08:53People are saying, oh, I'm just bitter.
08:55Do you want to know something?
08:56I'm not bitter, folks.
08:57You want to know why I'm not bitter?
08:58I'm going to say it right now.
09:00I was long GME this weekend.
09:02I was actually long GME this weekend.
09:05The reason I was long GME is one, it reports next week.
09:10You know how I like to buy my stocks before the reports.
09:14Two, is the chart was starting to look productive.
09:17We had the huge sell-off.
09:19It found consolidation around 20, and I'm saying, I do look at charts.
09:24I don't always use them, but it was starting to hook.
09:26I talk about my little hook.
09:27I'm like, oh, it's starting to show a little bit of life here.
09:31I thought to myself, maybe some memesters get excited over the weekend.
09:34I did not think Keith Gill was going to post that he's got this.
09:37It's just a windfall.
09:38I sold the stock.
09:40I woke up at 6.45 this morning.
09:42I already knew it was going to be up because last night it was trading up on Reddit.
09:47I sold it this morning, I think at $40.75, so I'm out.
09:52It was good for me.
09:53It was a great trade.
09:54I was in it just for those reasons, so I'm definitely not better.
09:57I made money on it.
09:59It worked out, but what I do know is I just don't know if we have confirmation it's actually
10:04him.
10:05I'm thinking it.
10:06I'm not the only person thinking it, folks.
10:07There's a lot of people thinking it out there.
10:08A lot of people thinking it.
10:09It'd be a great opportunity for Musk to add a lot of legitimacy to Twitter, like if he
10:15could...
10:16I mean, it's a verified account.
10:17He can't do it though, I don't think.
10:18No?
10:19I don't think he can come out and say Musk can't do it.
10:20I don't think he can come out and say who owns this account, I don't think, or sold
10:25this account.
10:26That's private information, isn't it?
10:27Right.
10:28Right.
10:29But in fact, and it's not really...
10:30I mean, if you think about it, I mean, there's nothing...
10:35Is it illegal to buy someone's Twitter account?
10:37No.
10:38We don't know.
10:39I don't think so.
10:40We don't know for sure if that's what happened.
10:42I think it's probably more likely than not that this is Roaring Kitty.
10:45I just think that there are some questions...
10:47Where's the math though, AB?
10:48That's what I'm saying.
10:49Where's the math?
10:50I think there are some questions to be answered there about where...
10:53Did somebody get back them?
10:55Yeah.
10:56Maybe somebody's backed them.
10:57Did someone fund them?
10:58Did he make a trade after on GameStop that he didn't disclose publicly where he went
11:03short with somebody?
11:04There's a lot of different possibilities, including the possibility that it's not him,
11:09but let's assume it is for a second.
11:11Sure.
11:12Then I think we just need...
11:13There are questions that need to be answered though.
11:16How did you go from making 50 million on GameStop three years ago to having triple
11:20that three years later?
11:24It's plan B, bringing up a good point here too, AB, and I thought this too.
11:28Did he make on the recent run that we just had two weeks ago?
11:31Did he have a bunch of calls, made a whole bunch of money, then just reloaded and maybe
11:35just made all this money right there?
11:37Good point.
11:38It's plan B. It's a good point.
11:40Maybe he did just make this money here on this big GameStop.
11:43Maybe he just made $100 million just literally in May.
11:47Somebody made a lot of money in May, so he probably did.
11:49It's a great point.
11:51Maybe he just made all that money there too.
11:53I wish Keith Gill would just come out.
11:55I wish the meme stuff would stop.
11:56I wish he would just come out with a video and say, look, it's me.
12:00I'm out here.
12:01Put all these other theories to rest, but those theories are going to be there as long
12:04as it's just him because he was like the bandana guy.
12:07He's out there making the videos.
12:10It just doesn't feel like his style to just be posting memes and not coming out here and
12:15getting all ramped up.
12:16Think about the stock.
12:17He comes out and he's got his bandana.
12:18Why is he not doing that?
12:21He was cool personality, all that.
12:25Did he get money from the movie?
12:26That's why the questions are still there because anybody can post a meme.
12:32What about the movie?
12:34ThriftyFTJ13 says, what, did he get some money from the movie?
12:40Maybe.
12:41Yeah, so maybe he did.
12:43Maybe the money adds up.
12:45Maybe it does.
12:46He made a lot of money in there somewhere though.
12:47Between the GameStop top and somewhere, he went from $37 million to $174 million if it
12:53is indeed him.
12:54Or maybe there's a hedge fund back.
12:55Maybe there's a lot of questions.
12:56We just don't know.
12:58These are just questions, folks.
13:00I'm not saying anything.
13:01There's no accusations here, nothing like that.
13:03Is this all legal?
13:05Those are questions here too.
13:07Is everything legal?
13:09He's basically got a printing press here right now.
13:11If he posts something, whoever's behind this account, if they post something, they know
13:16what's going up.
13:17I mean, they massively front-loaded this, 23, 120,000 calls.
13:23Is that how many he had, 120,000 calls?
13:26Is that right?
13:28The position's gone, so I can't see it now.
13:29Was it 120,000 calls?
13:30Let's pull it back up real quick.
13:34He had-
13:35He owns 120,000 calls right now?
13:37Yep.
13:38120,000 June 21st, $20 strike call.
13:40That's exposure to 12 million shares and he has 5 million, so he's exposure to 17 million
13:47shares.
13:48So 17 million.
13:50But there's not really a risk because he knows-
13:52Times 18.
13:53No, there's no risk.
13:54This is my point.
13:55I'm making this point.
13:56There's no risk here because he knows it's going to go up.
13:58He's front-loaded this with 17 million shares times $18 a share.
14:06So what is that?
14:0717 times 18.
14:08Joel, you're good with that math.
14:09400 million.
14:1020 times 20.
14:11It's a little bit less.
14:12It's a little bit less.
14:13300 million.
14:14It's up $300 million here.
14:15It just went from 174 million to 500 million overnight.
14:18Wow.
14:19Keith Gill or whoever's behind this account has a printing press right now.
14:23That's incredible.
14:24Yeah.
14:25And then I think again, like there is-
14:26306 million.
14:28You're all over the math today.
14:29$306 million.
14:30Somebody just made $306 million.
14:31If they sold.
14:32Wow.
14:33If they sold.
14:34Well, if they sold.
14:35Yeah.
14:36They're up.
14:37They're up $306 million right now.
14:38Wow.
14:39It's incredible.
14:40Again, there is the possibility that someone came in and like, I mean, why would Keith
14:47Gill not do it if someone came in and like some rich investor or a hedge fund decided
14:51to back them and said, hey, we'll give you $100 million.
14:55You keep 50% of the profits.
14:57Yeah.
14:58The other 50%.
14:59And I mean, he's been through this now.
15:01Keith Gill went and testified to Congress, so I have no doubt that he knows and he's
15:06consulted with lawyers about what he's allowed to do and what he's not allowed to do.
15:11You know, if he tweeted all this stuff last night and posted his Reddit stuff and it's
15:15sold first thing this morning, there might be a case for market manipulation or whatever
15:20against him.
15:21So maybe he wants to hold for a couple-
15:23I don't know if there is.
15:25I mean, is it illegal to post memes?
15:29Is it illegal to post your positions?
15:32Well, yeah.
15:33I mean, when you think about-
15:34He's not telling you to go out and buy it, but he knows the media is going to buy it.
15:37The intent is to move the stock higher.
15:39It's obvious the intent.
15:40Can you prove that intent in a court?
15:43It's difficult, man.
15:44There was somebody just on CNBC a little while and they're saying this regulation hasn't
15:48kept up with the meme stuff.
15:49That's why it's so difficult to like-
15:52I don't know what's going on.
15:53It hasn't kept up with anything.