Source: Caixin.
Both the bulls and bears around Gamestop seem to be preparing to gradually exit. On the one hand, Citron Research, a US short-selling institution, announced on the social platform X that it is no longer shorting Gamestop. On the other hand, Keith Gill, the 'head brother' of US stock retail investors, may have sold some of his held Gamestop options positions.
On Wednesday, US stocks fell by 16.5%, and both long and short sides around the stock seem to be calling it quits and preparing to gradually exit. On one hand, US short-selling institution Citron Research announced on social platform X on Wednesday that it will no longer short-sell GameStop. On the other hand, as trading volume of GameStop option contracts skyrockets, some market participants think that Keith Gill, the leader of US retail investors, may have also gradually sold off some of his recently disclosed GameStop option positions and left the scene. $GameStop (GME.US)$As a well-known short-selling institution on Wall Street, Citron has always been one of the protagonists in the long and short battle over GameStop stock. In January 2021, due to the frenzy of retail investors driving GameStop skyrocketing, Citron was forced to close out its GameStop short position at a loss of more than 100 million US dollars. As GameStop surged again recently, Citron once again shorted GameStop. At the beginning of this month, Citron also revealed that they still hold a short position. However, only a few days later, Citron announced that it was stopping short-selling. Citron said, 'This is not because we believe GameStop's fundamentals will improve, but because they have $4 billion in deposits in banks and enough runway to appease fanatics such as shareholders.' Citron founder Andrew Left said that if the GameStop stock price reaches $45-50 per share, he will short-sell GameStop again. As of the close of trading on Wednesday, GameStop's stock price was around $25.46.
Is the leader of US retail investors quietly withdrawing as well? Keith Gill, also known by his online nickname 'Roaring Kitty,' led many retail investors in boosting GameStop's stock price and triggering a series of short squeezes in 2021. Gill released a screenshot on Reddit on June 2 showing that he holds a large amount of GameStop stocks and call options that will expire on June 21 with an exercise price of $20 per share and a total cost of $68.1 million. However, strange movements in GameStop's option market on Wednesday led Wall Street strategists to speculate that Gill may also be leaving the battlefield. According to Trade Alert, the average fill price of these contracts was $7.65 considering Wednesday's trading volume.
It looks like he is closing out, said Chris Murphy, co-head of derivatives strategy at Susquehanna International Group, under the impact of the large selling of options. As option volumes were sold off heavily, GameStop's stock price accelerated its decline at the end of Wednesday, falling 16.5% to $25.46. This year, the company's stock price has risen by 45%.
On Wednesday, US stocks fell by 16.5%.
As a well-known short-selling institution on Wall Street, Citron has always been one of the protagonists in the long and short battle over GameStop stock. In January 2021, due to the frenzy of retail investors driving GameStop skyrocketing, Citron was forced to close out its GameStop short position at a loss of more than 100 million US dollars.
As GameStop surged again recently, Citron once again shorted GameStop. At the beginning of this month, Citron also revealed that they still hold a short position. However, only a few days later, Citron announced that it was stopping short-selling.
Citron said, 'This is not because we believe GameStop's fundamentals will improve, but because they have $4 billion in deposits in banks and enough runway to appease fanatics such as shareholders.'
Citron founder Andrew Left said that if the GameStop stock price reaches $45-50 per share, he will short-sell GameStop again. As of the close of trading on Wednesday, GameStop's stock price was around $25.46.
Is the leader of US retail investors quietly withdrawing as well?
Keith Gill, also known by his online nickname 'Roaring Kitty,' led many retail investors in boosting GameStop's stock price and triggering a series of short squeezes in 2021. On June 2, Gill released a screenshot on Reddit showing that he holds a large amount of GameStop stocks and call options that will expire on June 21 with an exercise price of $20 per share and a total cost of $68.1 million.
However, strange movements in GameStop's option market on Wednesday led Wall Street strategists to speculate that Gill may also be leaving the battlefield.
Gill's 120,000 call options with an exercise price of $20 per share that will expire on June 21 were still in his position as of Monday night (June 10) EST, according to his disclosed investment portfolio.
However, strange movements in GameStop's option market on Wednesday led Wall Street strategists to speculate that Gill may also be leaving the battlefield.
Considering Wednesday's trading volume, the average fill price of these contracts was $7.65, according to Trade Alert's data.
"It looks like he (Gill) is liquidating," speculated Chris Murphy, co-head of derivatives strategy at Susquehanna International Group.
At a closing price of $6.40 per option contract, Gill's 120,000 contracts are worth $76.8 million upon completion of the transaction, an increase of approximately $8.7 million from his purchase price.
As option volumes were sold off heavily, GameStop's stock price accelerated its decline at the end of Wednesday, falling 16.5% to $25.46. This year, the company's stock price has risen by 45%.
Editor/tolk