The Beginning
This regular dude with a day job saw something special in GameStop way back in 2019. He thought the stock was way undervalued, so he started buying options like crazy. Basically, he bet the stock would go up, big time. And guess what? He was right!
The Reddit Forum and YouTube Fame
Keith didn't keep his insights to himself. As Roaring Kitty, he shared regular updates on WallStreetBets, a Reddit forum. His YouTube channel echoed his enthusiasm, touting GameStop as a solid investment. Then, in August 2020, something crazy happened. A big-shot investor named Ryan Cohen bought a ton of GameStop stock, and the price went nuts! Keith's original $53,000 investment ballooned to a cool $1 million.
The Short Squeeze Phenomenon
A thing called a "short squeeze" happened, and GameStop's price went NUTS, skyrocketing to almost $500 a share! Keith's investment became a whopping $48 million. He admitted, "I thought this trade would be successful, but I never expected what happened over the past week."
Market Volatility and Unwavering Belief
The party didn't last forever, though. The stock price dropped a bunch in February, but Keith stayed true to GameStop. He actually bought even more shares, bringing his total to over 100,000! He also had a bunch of options contracts and extra cash on the side. This guy wasn't messing around.
April 2021: The Millionaire's Journey
Keith exercised 500 call options contracts, gaining 50,000 more shares at $12 each. Then he bought another 50,000 shares, pushing his total holdings to over $30 million. As of April 16, 2021, Keith's Reddit post hinted at nearly $20 million in gains, with GameStop's share price at $154.69.
The Ongoing Saga
Fast forward to February 2022, and GameStop's price still hovered around $112. Keith's investment remained wildly profitable, a testament to the power of conviction and the Roaring Kitty effect.
And there you have it—the tale of Roaring Kitty and the GameStop rollercoaster. Remember, investing involves risks, and individual results may vary.