00:00folks you better buckle up because this
00:02is going to be quite the video and one
00:03that you absolutely need to watch before
00:06the events happening on Monday if you
00:08are a GameStop holder Trader lover hater
00:11conscientious Observer or even short
00:13seller this is going to be the video for
00:15you we are going to be covering five
00:17things number one the latest information
00:19on Roaring Kitty's position number two
00:21the cash position of gme and how that
00:24completely destroys the short seller
00:26narrative and what they may soon be
00:28doing with said c number three how the
00:31shareholder meeting delay That was
00:32supposed to happen on Thursday and now
00:34is going to happen on Monday might be
00:36very symbolic and what we should be
00:38expecting on said meeting number four
00:40we're going to discuss the latest volume
00:42Trends we are seeing and what they tell
00:44us could be happening next how a powder
00:46keg is brewing beneath the surface and
00:49lastly we're going to talk about how the
00:50point of Max pain for option sellers is
00:52getting higher why that is and the gamma
00:55ramp that is happening behind the scenes
00:57on the options chain we'll talk about
00:59what's going on and what it all means
01:01and as always if you're the one taking
01:03the risk you got to be the one doing the
01:04ultimate Frisk you must do your own due
01:06diligence on all ideas presented here on
01:08the channel let's get to work time
01:09stamps down below and today's video is
01:11brought to you by the lovely kitty 50
01:13sale on zip Trader options that coupon
01:15code will be expiring on Sunday night so
01:17if you'd like to join our program and
01:18get our step-by-step lessons private
01:20chat and our options alerts I'll put the
01:22link to that down below I think our GM
01:24calls that we've alerted are going to
01:25heat up a lot this coming week so you
01:27might want to get in on the team okay so
01:29I want to start with royan Kitty's
01:30latest position so royan Kitty posted on
01:32June 10th that he had 5 million shares
01:34and 120,000 call options and about 29.4
01:38million in cash now his latest update
01:40shows that he turned that into 9 million
01:42shares a little bit more than 9 million
01:43shares and 6.3 million in cash how did
01:46he do this well presumably he sold some
01:48of his options and exercised some of his
01:50options and that jumped him from 5
01:52million to 9 million shares and that's
01:54quite the jump and keep in mind this is
01:55a guy that had about a billion dollars
01:57in a total gme position and overall he
01:59basically turned down that billion
02:00dollars and said nah I'll take the
02:02shares I'm just chilling if that isn't
02:04somebody who believes in his thesis I
02:06don't know what is you look at the top
02:08institutional holders this puts royan
02:09Kitty right above State Street and only
02:11behind Black Rock and Vanguard but of
02:14course Mr Kitty he's no Institutional
02:16Investor he's just a guy who says he
02:17likes the stock but what is roaring
02:19Kitty's endgame here with his position
02:21well if you look at the trends of his
02:23disclosures it seems pretty clear what
02:24he is doing and what his strategy is in
02:26fact on September 16th 2020 when he
02:28posted his position at that time he
02:30owned only 10,000 shares of gme and had
02:32various strike call options expiring at
02:34several different dates Q4 2020 and q1
02:37through2 of 2021 and as you look at his
02:39disclosures and the trend there you
02:41could see that the buying call option
02:43strategy and exercising to buy more of
02:45the float strategy has been what he has
02:47been doing and it's been incredibly
02:49successful for him by March 2021 he had
02:52disclosed that he had 10x the number of
02:54shares in his position and once again
02:55had bought more call options which
02:57presumably were later used to buy up
02:59more and more shares if you look at the
03:00overall trend so roaring Kitty strategy
03:03seems to be very very simple and it's
03:05been a strategy he's been employing for
03:06years he first starts by buying call
03:08options and as the stock price goes up
03:10he exercises said call options he owns
03:13more shares and then he rinses and
03:14repeats once again going and buying call
03:17options now presumably some of the times
03:19he's done this it hasn't been very
03:21profitable but overall it's been working
03:22so well for him that he's been able to
03:24exponentially grow his position and
03:25that's how he's been able to go from a
03:27$50,000 position to What was a bli ion
03:30dollar at highs and how he now has some
03:329 million shars so then that begs the
03:34question what exactly is he going to do
03:36next well well if you look at his
03:37step-by-step strategy well what he's
03:38going to do next is likely buy more call
03:40options and if history is a judge well
03:43he usually goes four to six months out
03:45with his call option positions and so
03:46I'd say fat chance he's buying December
03:49calls maybe a mix of quicker to
03:50expiration calls dating out to the end
03:52of the summer since momentum is pretty
03:54hot right now too okay next let's go
03:56ahead and talk about the cash position
03:58of gme and how that completely destroys
04:00the short seller narrative so here is
04:01the dealio we know that GameStop just
04:03completed two offerings the 45 million
04:06shares they did in May and the 75
04:07million shares they just finished more
04:08recently but how much capital Did they
04:11actually raise well if you look at their
04:12SEC filing they raised 9334 million from
04:15their first offering and 2137 billion
04:17from their second totaling just over 3.1
04:20billion in cash raised now we know that
04:22at the last report Jimmy had just under
04:24$1 billion of cash on their balance
04:26sheet which means now they likely have
04:28about 4.1 1 billion in just cash give or
04:31take but don't forget they've also got
04:33$83 million in treasuries 58.9 million
04:36in receivables owed to them 675 million
04:39in merchandise inventories and so on and
04:41so forth so so overall I mean they had
04:42about 2587 billion give or taken assets
04:45before this offering now they have
04:46another 3.1 billion you add those
04:48numbers together you subtract the
04:49liabilities you're looking at somewhere
04:51around $4.4 billion in total assets and
04:54you look at the market cap at the time
04:56of shooting this video it's at about $10
04:58billion that means that depending on the
05:00day's trading somewhere around oneir to
05:03one half of gme's market cap is in
05:05straight up cash that's very very
05:07unusual for any company let alone a
05:09company that has some of the highest
05:10short interest in history you tend to
05:12short a stock when you believe they're
05:13going to go towards bankruptcy but it's
05:15very very difficult for a company with
05:17almost half of their market cap in
05:19straight up cash to go bankrupt unless
05:21they have huge bills but this is a
05:22company that doesn't have huge bills I
05:24mean this is a company that can afford
05:25to lose money for many many many many
05:28years and still not not go bankrupt and
05:31yes I know short sellers will disagree
05:32with me they'll say okay but GameStop is
05:34literally suffocating under mountains of
05:36money GameStop is accumulating billions
05:38in Reverse debt reverse debt Charlie how
05:40can that not be scary the short sellers
05:42will say look GameStop is being Reckless
05:44they're keeping too much cash on their
05:46balance sheet they should be using a
05:47growth strategy you must sell the stock
05:49now before it goes bankrupt but here's
05:51the thing folks this cash is not just
05:53about buying GameStop endless time it's
05:55an opportunity for them to completely
05:57change and supercharge their business
05:59business at minimum GameStop can put
06:01this cash in just treasuries it's a very
06:04simple thing to do and they'll get $240
06:06million per year somewhere around $240
06:09million per year even if their core
06:11operations operate at a loss of say 50
06:13million a quarter they could still net a
06:14profit net loss for the last quarter was
06:16just $32 million and I mean the first
06:18quarter of every year seems to be a
06:20little bit slow for the Stop of game so
06:22there's a lot of margin for error here
06:24that's the point but at the same time
06:25GameStop can do far far better if it
06:27becomes a strategic acquisition company
06:29there's a lot of speculation that Ryan
06:31Cohen might take GameStop the way of
06:32Warren Buffett's famous Berkshire
06:33Hathaway berky MCB Burke was once a
06:36textile maker that then ventured into
06:37investing in a tons of other businesses
06:39and diversifying and became one of the
06:41best performing tiers of all time
06:43GameStop can easily push towards that
06:45direction it's got so much Capital it
06:47could easily start acquiring some small
06:49but profitable businesses and change the
06:51overall picture Okay moving on so the
06:53much anticipated Thursday shareholder
06:55meeting was delayed as you likely
06:56noticed it was first scheduled for
06:58Thursday then pushed to Friday and now
06:59it's pushed to Monday they said this was
07:01because of unprecedented demand from
07:03shareholders seeking to access the
07:05meeting and they updated the time to
07:0611:30 a.m. Central Standard Time on June
07:1017th which again is on Monday now we
07:12need to cross into deep speculation
07:14territory here to really analyze some
07:16reasoning and potential ideas for why
07:18they might just have moved it to June
07:2017th there may be some symbolic reasons
07:22for it or maybe just coincidences but
07:24I'm going to go ahead with symbolic
07:26reasons now you got to remember that the
07:27biggest speculation is that at the this
07:29meeting roaring Kitty will be announced
07:31as a potential board member nominee or
07:33some form of Insider affiliate and that
07:36is becoming a strong possibility given
07:37he does have a huge stake in the company
07:39Ryan Kitty himself tweeted the
07:41suggestive picture from the TV show The
07:43Office it's of character Michael Scott
07:44with a kitty in his pocket shaking hands
07:46with his boss who has the gme logo on
07:48him now this tweet gets a little bit
07:50more interesting when you think about
07:51how June 17th is National take your cat
07:54to workday and to be honest I mean this
07:56is the first I'm hearing about take your
07:57cat to workday and I'm not aware that
07:59this is actually a thing people do I
08:01heard about this and I was thinking you
08:02got to be kidding me this sounds too
08:04perfect oh man I really don't have much
08:06of a comedy career ahead of me however
08:08that aside bring your cat to work day
08:09and kitty tweeting a picture of Michael
08:11Scott bringing Kitty to work and shaking
08:13GameStop's hand seems pretty on the nose
08:16so we'll see what happens Monday I don't
08:18know if this is a coincidence could this
08:20be a nothing Burger sure but I'd say as
08:22with most things with GameStop there's
08:24got to be something else going on
08:25beneath the surface here now let's talk
08:27about the volume Trends we are seeing
08:28and what exactly they tell us volume
08:30right now shows GameStop is like a
08:32powder keg about to blow how do we know
08:34this well remember volume is the amount
08:36of shares trading in a day if you look
08:37at the volume on the chart you could see
08:39that volume in June has been averaging
08:41higher than the volume in May which
08:43means the battle in a sense is far more
08:46active now than it was last month and
08:47remember not all volume is equal it's
08:49not so simple to say that more volume is
08:52better or less volume is worse there are
08:54other variables to volume such as the
08:55proportion of said volume that is upward
08:58sentiment versus downward sentiment then
08:59there's the time of day when the volume
09:01is applied if upward sentiment volume is
09:03applied during a period of low liquidity
09:05the price can Skyrocket a lot faster and
09:07vice versa the volume it took to spike
09:09to 80 back in May is much less than it
09:11would take now because simply there was
09:13less liquidity then it was much much
09:15much bigger of a surprise back then and
09:17all of that big demand coming out of
09:18nowhere after years of not much demand
09:21was very very unexpected so so the
09:23underline market makers had no time to
09:25prepare and a lot of that happened in
09:26extended hours trading where liquidity
09:28is low anyways today obviously there's
09:30much more volume going back and forth as
09:32well as more shares out there but
09:33nonetheless if you see any stock and it
09:35has an overall upward Trend at the same
09:37time where the volume is on a stair step
09:39upward it does tend to suggest more
09:41momentum is coming and volume right now
09:42shows GameStop is like a powder keg
09:44about to blow the next breakout of
09:46volume will likely take us higher than
09:48early June Heights and that will light
09:50said keg so I would keep an eye on that
09:52volume because you would be surprised
09:54what happens if this picks up
09:55meaningfully this coming week or the
09:57week after okay lastly I want to take
09:58you over to the options chain and show
10:00you what's going on here now if you want
10:02to predict movements in an underlying
10:03stock you need to understand options a
10:06lot of people kind of tune themselves
10:08out from the options world but you just
10:09can't do that if you're trading
10:11especially some of these very very
10:13popular stocks where lots of people and
10:15lots of volume does flow to the options
10:17I know options are a dirty W in the
10:19Reddit Community because people just
10:20like to buy the stock but clearly as
10:22Roan Kitty has demonstrated options
10:24could be a great way to make money and
10:26or acquire more shares if that is your
10:28goal and not only that but they are a
10:31very important underlying motivator of a
10:33Stock's trading if you look at the max
10:34pain for gme it's been trending up
10:37pretty consistently now what exactly is
10:39Max Payne Charlie charito well Max Payne
10:41refers to the price level at which the
10:44largest number of options both calls and
10:46puts will expire worthless this is the
10:49price level that causes the most
10:50Financial loss to options holders and
10:52the least Financial loss to options
10:54Riders of course the Riders are the
10:56sellers now why does this matter well it
10:58can be the case that stock prices tend
11:01to gravitate towards the max pain Point
11:03as the expiration date approaches this
11:06is thought to be because options Riders
11:08the sellers who generally want options
11:09to expire worthless May seek to
11:11influence the price especially if they
11:13are big Market influences behind the
11:15scene if it's a big money Rider well all
11:17of a sudden what happens well they have
11:19the power to push something down or push
11:21something up should that be needed and
11:23so in a way that means the max pain
11:25Point can act as a key level of support
11:27if if max pain for example is at 20
11:29$7.50 which it's at right now that means
11:31that you have a very very critical key
11:34support level there and as time goes on
11:36the key level of Max pain has gotten
11:38higher and higher and higher very very
11:39consistently meaning the springboard for
11:42bouncing the support level for bouncing
11:44has gotten higher and higher and higher
11:46consistently and more and more
11:48consistently which is very very key to
11:49know heading into this week if that
11:50continues to get higher well you can
11:52expect higher and higher balancing
11:53levels now there's another angle to this
11:55which is the gamma ramp what is a gamma
11:57ramp well a gamma ramp is simply a ramp
12:00of gamma goodbye that's it for today
12:02you're welcome for that great
12:03explanation but seriously a gamma ramp
12:05happens when there's a ton of money
12:06going into higher and higher strike
12:08calls and it's a sign that more short
12:09sellers are worried the price is going
12:11to be higher and need to hedge and or
12:13more people are speculating that the
12:14stock is going to go higher and want to
12:16benefit from said contract appreciation
12:19now when you see a gamma ramp it also
12:21tends to mean that market makers selling
12:23the contracts need to hedge more
12:25themselves and often times they do this
12:26by what by buying shares which can cause
12:29bigger more full self-fulfilling
12:31prophecy that caused stock prices to go
12:33up even further and right now we are
12:35seeing a huge ramping ahead of the June
12:3721st expiry calls we have about 6 days
12:40until those expire yet you can see open
12:41interest expanding meaningfully at
12:43strike 125 which are indeed Lotto levels
12:46but a host of other more likely to hit
12:47strike prices are starting to see some
12:50volume flow into them as well some
12:52increased open interest which suggest
12:54which suggests at the very least there's
12:56an increase in people expecting a huge
12:58pop next week but still I think even
12:59more importantly the ones dating out
13:01past June into July are also seen an
13:03open interest change as well with
13:05strikes 100 125 50 120 and 20 seeing
13:08some of the biggest increases in open
13:09interest now people don't usually demand
13:11contracts with high strikes unless they
13:13suddenly think the underlying is going
13:15to be much more likely to move upward
13:16and so that's what you have to keep in
13:18mind heading into this week there's more
13:20and more people expecting a bigger and
13:21bigger move to the upside anyways folks
13:23that caps off today's video what is your
13:24thought process on Jimmy heading into
13:26this week do you see a big uptick coming
13:28or are we at the end of of the road are
13:29we going to see stagnation or are we
13:31going to see a selloff let us know what
13:32your thought process is down below and
13:34why and we appreciate each and every
13:36single one of you make sure to take
13:37advantage of that kitty 50 coupon code
13:39on zip Trader options to get 50% off and
13:41that expires Sunday night you'll get our
13:42step-by-step lessons private chat and
13:44our options alerts we send out a lot of
13:46different options alerts with very very
13:48well broken down reasons for them and
13:50very top to your research and we'd love
13:51to have you on the team anyways have a
13:52good one folks and we'll see you in the
