Legendary Investor Bill Gross is Betting Against GameStop, Again!

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Following the dip, Gross who short-sold the stock disclosed in the Citywire Selector podcast  he was losing between $10 million and $15 million, but after the short-squeeze effect faded, the stock market turned the table in his favor, leaving him with $10 million profit.
“I was losing millions of dollars and that’s not a good feeling when you go to bed,” he told the podcast.

Billionaire and investor Gross told Bloomberg on Tuesday: “I did manage to overcome my insecurities and hold on and ride it all the way back down in terms of getting out.” He added he’s now “back in, I’m still selling call options at $250 and $300.”

Call option sellers promise to sell a stock to the option’s buyer for a limited timeframe. A specific sale price is negotiated and set. The option sellers benefit if the stock plunges below the contracted price also known as the strike price.

The position Gross took is a very risky one since GameStop has been leading a rally since January’s stock plummet. GME has surged to more than $200 in a rally. Unfortunately,  this time, Redditors are not the only reason behind the stock price surge.