The GameStop (NYSE: GME) stock saga has gripped the trading community again, causing GME shares to surge to $70. However, the hype quickly faded despite the influence of Keith Gill, also known as Roaring Kitty, who contributed to the surge with a series of cryptic tweets.
Now, a new catalyst could drive GME stock even higher. On June 2, after a hiatus of over three years, Roaring Kitty revealed in the Reddit community r/Superstonk that he holds five million GameStop shares worth $115.7 million and 120,000 call options worth $65.7 million.
How much could Roaring Kitty Earn from his GME stock calls?
The question of how much Roaring Kitty will sell his GameStop stock calls for is a hot topic among traders, with the calls currently valued at $65.7 million.
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The fate of Roaring Kitty’s GameStop stock calls is uncertain. If he holds these calls to their expiry on June 21, their value will be heavily influenced by GameStop’s trading price. It’s important to note that if GameStop trades at $20 or below, the calls will be worth nothing.
At $21, the calls will be worth $12 million, increasing by $12 million for every additional dollar increase in GameStop’s price above $20. For instance, at $22, the calls will be worth $24 million; at $25, they will be worth $60 million; at $30, they will be worth $120 million; at $35, they will be worth $180 million, and so on.
The value continues to rise with each increase in GameStop’s stock price.
GameStop stock is already surging in European stock markets
With the markets opening sooner in Europe, with an almost 6-hour headstart compared to their U.S. peers, Gamestop stock is already soaring in Germany, adding over 65% to its value and trading at €35.50 ($38.40).
At the same time, American stock markets are priming for a surge, with GME shares trading at $43.66 after an 90% increase in the pre-market.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
