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THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

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Business

Wall Street is resisting as ‘Roaring Kitty’ attacks again.

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Photo Credit: SOPA

On Sunday, Keith Gill, the “Roaring Kitty” meme stock investor who revived GameStop and AMC Entertainment share trading last month, reported on Reddit that he had bought approximately $116 million in GameStop stock.

He also acquired 120,000 $20 call options, according to the screenshot. Gill has until a certain date to buy 12 million GameStop shares at $20 each. GameStop shares closed Wednesday at $46.55, more than quadruple the options’ price. His screenshot on Monday showed $54 million in paper gains in one trading session.

Gill shared a new photograph on Thursday showing that he had not sold any GameStop positions since the Monday screenshot and that his holding is worth over $500 million. CNN has not verified the screenshots.

Gill’s comeback on social media boosted meme stocks like GameStop and AMC Entertainment, reminiscent of 2021’s market craze. Meme stocks are shares of cult companies that fluctuate based on social media popularity rather than fundamentals.

Gill may be subject to regulatory examination due to the high value of his portfolio and GameStop and AMC Entertainment share activity in recent weeks. Gill has not advised anyone to buy GameStop stock or predicted its moonshot. His only communication has been memes, gifs, brief videos, and portfolio images. Gill may not be behind those posts.

Wall Street is still watching. The screenshots appear to be from E*Trade, which the Wall Street Journal claimed on Monday was considering firing Gill. Gill purchased a “large volume” of GameStop options before posting on X for the first time in three years in May, according to the Journal.

Gill may have acted unethically, according to Freedom Capital Markets chief global strategist Jay Woods. Woods doesn’t think it’s criminal because the trader hasn’t advised anyone to buy the stock or stated anything.

This story was not commented on by Morgan Stanley, which controls E*Trade. Gill declined comment.

Gill isn’t the only trader to inspire copycats. In May, Warren Buffett’s Berkshire Hathaway revealed a $6.7 billion stake in Chubb, raising the stock price of the insurance company. But Chubb shares have only climbed 4% since Buffett’s position was announced. Since Gill returned to social media, GameStop and AMC Entertainment shares have risen 167% and 99%, respectively.

Should I compare Keith Gill to Warren Buffett? No, although Gill’s influence is similar. Some want to ride his coattails, said Woods.

The Securities and Exchange Commission is investigating GameStop call options trading activity around Gill’s social media posts because of internal suspicions that it may be manipulation, the Journal reports.

A SEC representative told CNN that the agency “does not comment on the existence or nonexistence of a possible investigation.”


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