The return of the "leader of retail investors" in the US stock market! A single chart triggers fluctuations in multiple internet-famous stocks, with some accounts making nearly 4 million in profit quickly

China Finance Online
2024.09.07 02:09
portai
I'm PortAI, I can summarize articles.

After disappearing for nearly two months, American retail investor "leader" Keith Gill posted a modified image of "Toy Story 2" on social media platform X on Friday, triggering intense trading in GameStop and Chewy stocks. This news led to a 6.8% increase in GameStop's stock price, while Chewy experienced a decline. The market speculated that Gill may be selling Chewy but still focusing on GameStop. This fluctuation reflects the high attention of retail investors to Gill's actions and his market influence

After "disappearing" from the scene for nearly two months, the American retail investor known as "Roaring Kitty" and "leader" Keith Gill returned on Friday...

It is reported that "Roaring Kitty" posted a cryptic image on the social media platform X on Friday after a two-month absence, triggering market effects that seemed to have led to at least one options trader (unclear if it was Gill himself) making substantial profits in a short period of time.

The image posted by "Roaring Kitty" that day was from the 1999 movie "Toy Story 2" - of course, the image was altered, with a dog's face photoshopped onto the head of the movie character Woody, who was being dropped from the air by a child at the time.

As this was the first post by the account named "Roaring Kitty" on X platform in over two months, it quickly garnered enthusiastic attention from American retail investors on social media and caused two stocks closely associated with "Roaring Kitty" - GameStop and Chewy - to experience unusual trading activity during the day.

In fact, the cartoon dog head image posted by "Roaring Kitty" in the latest post on Friday was not unfamiliar, as two months ago, Gill's last tweet was also this cartoon dog image. Following the tweet at that time, the stock price of the American online pet food retailer Chewy surged, and Gill was later confirmed to hold a 6.6% stake in the company.

Therefore, many people's reaction to the latest post on Friday was actually speculating whether Keith Gill might be selling Chewy, which led to a significant short-term decline in Chewy's stock price.

However, in hindsight, it seems that Gill's real target was not Chewy, but the original "ancestor" of meme stocks, GameStop.

According to the website Know Your Meme, the screenshot from "Toy Story 2" mentioned above has the meaning of "I don't want to play with you anymore" and is often used to express the public's abandonment of video games. Some American retail investors speculated based on this, "Is Gill back to where he left off?"

In terms of market movements, after Gill's post, GameStop's stock price rose by 9% during Friday's trading session. Although the price increase narrowed later, the full-day increase still exceeded 6.8%, closing at $23.92.

It is reported that about 18 minutes before Gill's post at noon, a trader seemed to have bought about 10,000 GameStop call options expiring on September 13 with a strike price of $22.5, with a total value of approximately $1.74 million And about 20 minutes after this tweet was posted, two groups of such options (each with 5000 contracts) were sold, with a total value of approximately $2.29 million.

According to LSEG's statistics, since there were only about 4300 open contracts in these call options before Friday, the positions closed on Friday after the tweet were likely the new positions opened before the tweet, allowing this mysterious trader to make a net profit of about $550,000 (approximately RMB 3.89 million) in just a few tens of minutes, achieving a return of about 30%.

Currently, it is not known whether this mysterious options trader is Gill himself.

It is worth mentioning that in July of this year, investors of GameStop sued Keith Gill for his involvement in the "pump and dump" of GameStop's stock. However, this lawsuit was inexplicably withdrawn later on. Now, after nearly two months of silence, Gill seems to be stirring up the market once again