[HN Gopher] GameStop stock soars after 'Roaring Kitty' reveals $...
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GameStop stock soars after 'Roaring Kitty' reveals $175M bet
Author : paulpauper
Score : 10 points
Date : 2024-06-03 21:50 UTC (1 hours ago)
(HTM) web link (finance.yahoo.com)
(TXT) w3m dump (finance.yahoo.com)
| paulpauper wrote:
| I am confused. I thought he had only $40 million after the stock
| peaked in 2021. Where did he get these extra funds, especially
| given that GameStop had fallen 80% from the 2021 peak?
|
| https://markets.businessinsider.com/news/stocks/gamestop-sto...
|
| Fast-forward to 2024 and he claims a net worth of $200 million at
| the time of the screenshot when GameStop was at $22 on Sunday. So
| presumably he would be worth $1 billion if GameStop were trading
| again at its 2021 highs.
|
| Plus, he would have incurred a huge short-term capital gains tax
| bill from his 2021 profits, as he used options.
|
| I suspect the whole thing is fake: either the screenshot is
| fabricated or he was loaned the money to hype the stock; the
| money is not his.
| ashconnor wrote:
| They're call options right? So this could be a leveraged play.
|
| Edit: Looks like the position is 5,000,000 shares and 120,000
| call options.
| Kirby64 wrote:
| Margin trades are different from options.
|
| If you believe the screenshot he paid $175mil for the options
| and shares.
|
| I'd agree with others, no clue where he got the money from.
| It's definitely not his, unless he somehow made an additional
| $150mil from someone or somewhere.
| desmond373 wrote:
| He also would of made a little money from movie deals and other
| trades that he may of made.
|
| Its worth noting that a lot of the figures in the article are
| after the spike caused by his announcment, specificly the
| options position would be giving him a large boost.
| qeternity wrote:
| > as he used options.
|
| I don't know the exact positions he held but I am reasonably
| sure he had some long dated stuff. Not sure whether it was long
| enough to qualify for LTCG, but simply using options does not
| preclude LTCG.
| JSDevOps wrote:
| How on earth isn't this blatant stock manipulation at this point.
| tempaway355751 wrote:
| He's just posting his position, didn't say a word, its just a
| screenshot of a spreadsheet. The surge is happening because now
| everyone knows that (amazingly) he didn't cash out 4 years ago
| and instead increased his position x5
| SlightlyLeftPad wrote:
| Just as one example, given that Elon has blatantly lied about
| capabilities of Tesla to deliver promises. I think it's
| adequately clear to everyone at this point that nobody cares.
| 1oooqooq wrote:
| economists, educate me please.
|
| people buy shares, the company sells shares, pay the ceo and
| skeleton staff, and then what? how anyone make money on that
| besides pump and dump?
| maayank wrote:
| Board decides each quarter on behalf of the stockholders
| whether to pay dividends or reinvest profits to increase the
| potential of future dividends.
| toast0 wrote:
| Brokerages, exchanges, and market makers make money when
| customers are trading. Doesn't make a lot of difference what
| they're trading or at what price. Although, when there's a huge
| amount of volatility, there's maybe more risk and at least more
| collateral required. (Although the recent change to T+1
| settlement will likely reduce that)
|
| It's valuable for the company to sell shares when the price is
| high. If they don't have anything specific to do with the
| money, they can always do stock buy backs when the price comes
| down to earth.
|
| For unrelated shareholders, yeah, it'a pretty much pump and
| dump, but if the company dumps while the stock is pumped, that
| helps your book value per share, right?
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(page generated 2024-06-03 23:02 UTC)