Gill, who was instrumental in the inception of the meme-stock phenomenon in 2021, recently disclosed a substantial GameStop stock and options position in a screenshot posted on Reddit on June 2.
GME stock has experienced substantial fluctuations as a result of his decision. The stock closed at $29.12 on Thursday, a 14% increase, but it subsequently declined to $28.66 in extended trading.
Investment Update By Roaring Kitty
On Thursday, Keith Gill, the stock influencer renowned as Roaring Kitty, disclosed that he had increased his GameStop holdings to 9 million shares from 5 million at the beginning of the week.
Gill's update, which was published on Reddit after the market closed, indicated that his position was valued at $262.1 million. According to recent regulatory filings, this represents 2.1% of GameStop's 426 million outstanding shares.
The update also disclosed that he no longer possesses the 120,000 June 21, $20 strike call options that he had previously disclosed.
What Does Roaring Kitty Investment Mean?
Based on the most recent share count per corporate filings, Gill's expanded position makes him the fourth-largest shareholder in GameStop, with a 2.1% stake. Earlier this week, GameStop sold an additional 75 million shares for just over $2 billion.
Nevertheless, these FactSet figures are derived from the most recent 13-F filings from fund managers, which only reflect accurate data as of the end of the first quarter. This was before Gill reignited the meme-stock fervor by abruptly ending his three-year silence on social media.
GameStop Options Experienced A Higher Volume
The trading volume in GameStop's $20 strike calls expiring June 21 increased on Wednesday afternoon and remained elevated on Thursday, sparking speculation that Gill may be selling some of his contracts.
It is conceivable that Gill utilized a portion of his call options to compensate for the expense of increasing his ownership of the company. Nevertheless, the screenshot he shared indicated that most of the increase in his position was not directly attributed to the exercise of certain contracts, which enabled him to purchase up to 12 million shares for $20 each.
For example, his cost basis, which represents the average cost of his position, increased to more than $23 per share, while it was just over $21 per share in his initial update, which was posted on the Superstonk subreddit earlier this month.
GME Stock Forecast Technical Analysis
In the daily chart of GME stock price, the ongoing market momentum is volatile, while the visible range high volume line is below the current price. Moreover, the 100-day Simple Moving Average is also below the 22.62 static support line, working as a major support.
In that case, we may expect upward pressure to extend as long as the price trades above the crucial 100-day SMA line. In that case, upward pressure is more likely to extend toward the 48.13 resistance level in the coming days.
On the other hand, the recent high volume is below the current price, which might work as an important support. Below the 17.70 high volume line could lower the price towards the 10.00 psychological line.
