GameStop Back as Meme Stock After 'Roaring Kitty' Update

Options traders are taking the user's latest post as gospel

Fernanda Horner

Digital Content Manager

Jun 3, 2024 at 10:18 AM

Meme stock mania is so back, and Suspect No. 1 is at play. The shares of GameStop Corp (NYSE:GME) are up 70.9% at $39.54 at last check, after Keith Gill -- who is behind social media profile Roaring Kitty and instigated the retail trading frenzy of 2021 -- posted on Reddit (RDDT) under the username DeepF------Value.

The post includes a screenshot of an account holding a $116 million GME position, with 120,000 June 20-strike calls bought for about $5.68 each, as well as 5 million shares. It remains unclear whether the account belongs to Gill, however.

News of Gill's return to X -- formerly Twitter -- were enough to send GameStop stock to a three-year high in May. While the security is still trading below that peak, it has added over 32% in 2024, and is today on track for a third-straight daily gain. GME still carries a 6.1% year-over-year deficit, though.

Options traders are accepting Roaring Kitty's screenshot as gospel. So far today, 148,000 calls and 56,000 puts have swapped hands, which is three times the volume typically seen at this point. The weekly 6/7 128-strike call is the most popular contract, but positions are being opened at the 40-strike call in that series.

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