Benzinga - by Aaron Bry, Benzinga Editor.
Morgan Stanley's (NYSE:MS) E-Trade reportedly considered, or is considering, a ban on the trading account of Keith Gill, aka Roaring Kitty, according to a Monday Wall Street Journal report. E-Trade is reportedly looking into potential stock manipulation after Gill disclosed a position in GameStop Corp (NYSE:GME) worth more than $100 million, according to screenshots he posted to Reddit.
Dennis Dick, a professional trader and co-host of Benzinga's “PreMarket Prep” show, criticized a potential ban on Roaring Kitty, arguing Tuesday that it makes no sense.
"I have no idea why they are even looking into his account, let alone talking about blocking his trades," Dick said. "Buying calls is not illegal."
Gill returned to social media in May after being dormant for more than two years. He began to post cryptic memes and video clips to his followers on X, breeding speculation regarding his next move. Then, Sunday night, Gill posted on Reddit for the first time in years, showing screenshots of his position in GameStop.
Read Also: Regulators Turn Up The Heat On ‘Roaring Kitty’ Over Recent GameStop Trading Activity: What You Need To Know
The screenshots showed that Gill owned 5 million shares of GameStop and more than 100,000 call options at the $20 strike that expire June 21. When Gill posted the screenshots on Sunday night, the total position was worth around $180 million.
Monday, GameStop's stock soared higher, at one point trading up more than 50%, later closing around 20% higher. While Gill could have sold those option contracts for a massive gain, he posted another screenshot Monday afternoon showing that he had not sold any option contracts or shares and that his position grew from around $180 million to $260 million.
Gill, who was a prominent figure and the de facto leader of traders behind GameStop during its 2021 short squeeze, testified in front of the House Financial Services Committee in February 2021. The committee found no wrongdoing on Gill's end.
Photo via Shutterstock.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.