Ballad of Roaring Kitty

To the Moon

June 15, 2024

Diamond Hands Newsletter

Our Mission: Give everyone the tools to escape the matrix.

This week in the markets:

  1. U.S. Inflation Report: The latest data showed a higher-than-expected increase in the Consumer Price Index (CPI), leading to speculation about potential interest rate hikes by the Federal Reserve.

  2. Apple's AI Partnership: Apple announced a partnership with OpenAI to integrate advanced AI features into its products, boosting its stock and tech sector enthusiasm.

  3. ECB Rate Hike: The European Central Bank raised interest rates by 0.25% in response to persistent inflation, affecting European markets and investor sentiment.

  4. Cryptocurrency Market Volatility: Significant fluctuations were observed in the cryptocurrency market, with Bitcoin and Ethereum experiencing notable price swings amidst regulatory discussions​ (Investing.com)​

The Ballad of Roaring Kitty

Roaring Kitty, whose real name is Keith Gill, is a financial analyst and YouTuber. He gained fame for his role in the GameStop short squeeze of early 2021. Gill, known for his YouTube channel "Roaring Kitty" and Reddit username "DeepFuckingValue," advocated for investing in GameStop when its stock was heavily shorted by hedge funds. His analysis and enthusiastic posts contributed to a massive surge in GameStop's stock price, leading to significant financial impacts and widespread media attention.

Recently, Roaring Kitty (Keith Gill) made significant moves regarding his GameStop (GME) options trade. Here’s a summary of his recent actions:

  1. Reduction in Options Position: On June 13, 2024, significant volume in GameStop's $20 call options suggested that Roaring Kitty was selling large blocks of his options contracts. Reports indicated that many of these trades were executed in blocks of 5,000 contracts or more​ (InvestorPlace)​.

  2. Livestream Disclosure: During a livestream on June 7, 2024, Gill revealed that he still held a substantial position in GameStop, including 5 million shares and 120,000 call options expiring on June 21​ (InvestorPlace)​. However, he did not provide details on his plans to exercise or sell these options.

  3. Impact of Market Movements: The value of Gill's options position fluctuated dramatically due to GameStop's stock price volatility. After initially rising, the value of his options fell significantly following his livestream and subsequent market declines​ (WTAQ News Talk)​.

  4. Speculation and Strategy: Market analysts believe Gill might be winding down his position due to the impending expiration of the options and the substantial cash required to exercise them. As of the latest updates, he had not confirmed these speculations or provided further details on his strategy​ (InvestorPlace)​​ (WTAQ News Talk)​.

  5. Fluctuation in Options Value: The value of these options peaked at approximately $340.9 million when the contracts were priced at $28.41 each. However, following market declines, the value of the options dropped to $81.9 million, with the contracts closing at $6.81 apiece on June 10​ (WTAQ News Talk)​.