Gamestop Corporation (GME)

[WiseYoda]

I believe I have this correct as I took position here today? If anyone cares to share thoughts please do.

Kittys 120,000 options at $20 expires June 21st means he has the right to purchase 12 million shares at the $20 strike price OR he can sell his option and take the profit between what he paid and what the option price is on the day the transaction takes place.

The sellers who took the risk to sell the options at a $20 strike price HAVE to sell the buyer shares in Game Stop for the exercise price of $20.

So his 120,000 call options at a $20 strike price means he has the right to purchase a 12 million shares of GameStop at $20 a piece by a set expiration date of June 21st?

If the seller doesn't have all 12 million shares available to sell per the option contracts, the sellers will have to go and purchase them in the open market, which currently is around $27-30.

On the expiration of June 21st the buyer will pay the seller $240 million and to receive 12 million shares of Game Stop which currently valued around $360 million and the sellers will be out essentially $120 million.