Roaring Kitty Sells his Calls, adds 4,001,000 Shares to his GameStop $GME Position! — Transcript

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1. 0:03hey everyone here we are with another
2. 0:05update on the Roaring Kitty $20 call 621
3. 0:102024 update now we've written about the
4. 0:13current GameStop Saga a couple of times
5. 0:16and we were the first to start directly
6. 0:18tracking Roy and Kitty's position in the
7. 0:21$20 call expiring on June 21st
8. 0:252024 since then all eyes have been on
9. 0:28the position and on Reddit looking for
10. 0:30signs of an update from Roan Kitty on
11. 0:32his positions we first noted significant
12. 0:35bids side transactions on June 12th 2024
13. 0:39on the morning of the 12th we saw
14. 0:41roughly 2,000 contracts transact at the
15. 0:44bid but the real size came later on in
16. 0:47the day during the hour leading into the
17. 0:50market close on the 12th we saw a series
18. 0:53of sizable bids side Activity three sets
19. 0:57of orders were particularly interesting
20. 0:59with the first coming in between 3:30
21. 1:01and 340 eastern time with
22. 1:056,479 contracts transacting at the bid
23. 1:08and another
24. 1:108,915 with mid fills 10 minutes later
25. 1:15another
26. 1:175,672 contracts at the bid followed by
27. 1:20the largest volume of the day 10 minutes
28. 1:23later with
29. 1:2523,34 contracts transacted at the bid
30. 1:30did the total volume on the day on June
31. 1:3312th came in at
32. 1:3693,6 contracts with 64% of that volume
33. 1:39transacting at the
34. 1:41bid now given that this marked the
35. 1:44largest volume on that contract since
36. 1:47roaring Kitty posted his position and
37. 1:49was tracked and disclosed it led to many
38. 1:52disagreements on Twitter with some even
39. 1:54speculating that it wasn't
40. 1:56him however the data suggested that it
41. 2:00was indeed roaring Kitty trimming his
42. 2:09position on the morning of June 13th the
43. 2:12open interest of the $20 call dropped
44. 2:15considerably by 58,183
45. 2:29positional exit now that the open
46. 2:31interest had dropped below 120,000
47. 2:35contracts we could deduce that since
48. 2:37roaring Kitty owned 120,000 contracts he
49. 2:40did indeed close some of his position on
50. 2:43June 13th the gme $20 call for
51. 2:49621-2444
52. 2:52787 contracts transacted intraday with
53. 2:5556% of those coming in at the bid given
54. 2:59the sizing and the known large position
55. 3:01this was most likely roaring Kitty
56. 3:03trimming more contracts it wasn't until
57. 3:06after market closed on June 13th that we
58. 3:10got a position update from roaring
59. 3:13Kitty on the night of June 13th roran
60. 3:16Kitty posted an update on his GameStop
61. 3:19position to Super ston
62. 3:22subreddit as the data suggested roran
63. 3:25Kitty had sold all
64. 3:26120,000 of his $20 calls but he had
65. 3:30another update he had added 4, 1,000
66. 3:33shares of GameStop this led to
67. 3:35speculation on whether or not he
68. 3:37exercise some of his contracts so let's
69. 3:39take a look at that possibility
70. 3:42here the top half of this image is from
71. 3:45roaring Kitty's prior position update
72. 3:48his cost basis on 5 million shares of
73. 3:51GameStop sat at $21 27 cents per share
74. 3:56in the updated version we see that his
75. 3:58average cost had RIS to
76. 4:01$234 per
77. 4:03share now given the cost basis of his
78. 4:06contracts and the fact that we're not
79. 4:08sure whether or not erade includes the
80. 4:10cost of contracts and the average when
81. 4:13exercising it's not entirely clear
82. 4:15whether or not he did exercise some of
83. 4:17these contracts but it is
84. 4:19possible since he had contracts of the
85. 4:22$20 call at a cost basis of
86. 4:25$567 per contract it's possible that the
87. 4:28average share price of his newly
88. 4:30acquired 4, 1,000 shares came from
89. 4:33exercising some of the contracts this is
90. 4:36because he would pay $2 per share plus
91. 4:39the cost of the contracts which would be
92. 4:42$567 for every 100 shares coming out to
93. 4:47$25.65 per
94. 4:48share however while it's possible he
95. 4:51exercised some of those contracts we do
96. 4:54know that the vast majority at least of
97. 4:57his 120,000 contracts were sold to close
98. 5:00and given the movement raring Kitty
99. 5:02seems to represent it's unlikely that he
100. 5:04exercised and more likely that he sold
101. 5:07all of his contracts and bought shares
102. 5:09at market price