US business news sources Wall Street Journal (WSJ) and CNBC are reporting that online brokerage E*Trade is considering banning meme stock trader Keith Gill over recent activity in GameStop (NYSE:GME) shares.
Keith Gill was at the center of the meme share craze in 2019 and 2020 goes DeepF****ingValue on Reddit, but he hasn’t been active on the platform since 2021. (He’s still active on Twitter under the moniker @TheRoaringKitty, with more than 1.4 million followers). He resurfaced Sunday on Reddit, posting a screenshot from his E*Trade account showing a significant position in both GameStop stock and call options. Mr Gill’s 5 million GME shares were worth $115.7 million based on Friday’s close of $23.14 and 120,000 $20 call options on June 21, 2024 were valued at $65.7 million.
On Monday, GME stock jumped 21% to close at $28, with the shares worth $140 million and the rights almost doubling in value to $120 million, leaving Mr. Gill’s E*Trade account showing earnings of $85 million.
While Keith Gill appears to have been fully transparent with his holdings, the WSJ and CNBC report that E*Trade, now a unit of investment giant Morgan Stanley (NYSE:MS), is considering banning him after growing concern about possible stock manipulation. According to reports, E*Trade is having internal discussions on the matter, but has yet to come to a decision.
We will continue to follow this story as it develops.