32 upvotes, 1 direct replies (showing 1)
View submission: Keith Gill (u/DeepFuckingValue) and The Gamestop Saga
Others who experienced it first hand may be able to explain better than I, but the significance was that he sold the last of his call options at a $12 strike price, worth nearly $9 million on April 1st, and instead of cashing out, he doubled his 100,000 share position to an even 200,000. This essentially was a neat and tidy knot on one of the highest gains of any "yolo" investment reported on the sub, and a significant historical event in the terms of Reddit and the stock market; yet he chose not to cash out, and left with what could be interpreted as a final show of support for the company, and that he still believed in what he was saying when the share price was a mere $4. Considering this was precluded by sudden fame that came with a lot of unwanted attention, it was met with sadness and understanding that it would be wise for him to leave the public spotlight, which includes ceasing his involvement in the sub. His penultimate update was already the most awarded post on the site, but some use the final update as a sort of altar to give their free awards to memorialize the squeeze and the events around it, or simply to pay respects to him and his risky, but fruitful financial gain. That is my perspective on it, anyway.
Comment by blerpderp9 at 23/04/2023 at 12:15 UTC
3 upvotes, 0 direct replies
500 options contracts at a $12 strike at underlying price of ~$150. It was a cashless exercise of a ~$7m position that left him with $6.7m in holdings finalizing (total) his share position of 200,000 (as posted).
Why not sell, because covered calls on those shares could have netted him roughly 150-200K a week with OTM contracts for the following year and a half of cyclical volatility.
Wild.