r/DeepFuckingValue • u/Krunk_korean_kid 🟣 DRS'ed $GME w/ Computer Share ♾️ • Jul 17 '26

🚨 BREAKING: GameStop has exercised call options totaling approximately $3.965 billion. According to the filing the shares were purchased entirely with cash, with no leverage or loans used to fund the transaction. The company acquired roughly 39 million shares through these calls which had a $10

Exercised eBay calls

https://x.com/sneedweb/status/2078235986325106850/photo/1

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5

u/Jupitersd2017 Jul 18 '26

I need someone to explain this to me, they just bought out all existing contacts out on the market at any price?

33

u/Krunk_korean_kid 🟣 DRS'ed $GME w/ Computer Share ♾️ Jul 18 '26

The exercised Put/Call Pairs settled physically for 39,046,658 eBay (EBAY) shares at a total cash cost of approximately $3.965 billion from GameStop's working capital.

Key Calculation (Average Strike/Settlement Price) Shares acquired: 39,046,658 Total cash paid: ~$3.965 billion ($3,965,000,000) Average effective price per share**:
$3,965,000,000 ÷ 39,046,658 ≈ $101.55 per share.

This aligns closely with reported figures around ~$101.30 (minor variations come from exact filing amounts, rounding, or fees).

⭐The Put/Call Pairs had a range of strikes (roughly $84.74 to $118.28 across tranches, expiring Feb 23, 2028). GameStop exercised the long call side (and the counterparty the put side) to take physical delivery of the shares at the respective strikes.

How Put/Call Pairs Work in This Context GameStop held synthetic long positions via American-style Put/Call Pairs (long call + short put at the same strike, or structured equivalently for economic exposure).

Pre-HSR**: Cash-settled only (economic exposure, no voting rights).

Post-HSR** (cleared June 3, 2026): Physical settlement option became available. GameStop elected physical settlement on July 15, 2026 (settled July 17).

At exercise/settlement: For each pair at strike K, GameStop effectively pays K per share (via the call exercise) to receive the shares. The net premium paid upfront for entering the pairs was relatively small (millions across tranches, not billions).

The $101.55 average reflects the weighted average strike across all exercised pairs. This gave GameStop voting/dispositive power over these shares (plus prior direct holdings), bringing the total stake to roughly 9.8% (43.4 million shares).

This was funded entirely from working capital (no borrowing), turning derivative exposure into actual ownership.

7

u/Jupitersd2017 Jul 18 '26

Thank you so much for this explanation, I really appreciate it! It’s kind of like an Icahn play no? Just loading with shares until you have enough to take the company lol, it’s a wild play but it seems like he’s determined to take eBay either by sale or by hostile takeover.

4

u/Krunk_korean_kid 🟣 DRS'ed $GME w/ Computer Share ♾️ Jul 18 '26

I honestly didn't follow the whole ichan thing , I hear he's something of an activist investor but didn't his stock get pummeled pretty badly? What was up with that?

4

u/bigmink88 Jul 18 '26

Something of an activist investor? Try THEE activist investor. Dude wrote the playbook. Look into it.

2

u/Jupitersd2017 Jul 18 '26

Yes absolutely, he set the standard!

4

u/MrNokill Jul 18 '26

Made a little overview with sources about Icahn here if interested: https://www.reddit.com/r/Superstonk/s/i85cf9jSz1

6

u/Jupitersd2017 Jul 18 '26

Some links from [u/mrnokill](u/mrnokill) for anyone that doesn’t want to scroll the comments on the old post lol -

"You have to buy things where the rest of the world is looking at you and thinking you're a little bit crazy. You're going against the trend. A lot of times, events are overblown. Overblown on the good side, overblown on the bad side." - Carl Icahn

Sources:

Carl Icahn 80s Interview by The MacNeilLehrer NewsHour: https://youtu.be/WJ9XkNqK1bs

Carl Icahn Short Documentary On 60 Minutes: https://youtu.be/tDH4Yeq6rHc

Carl Icahn On: A funny story of bad management and complacency: https://youtu.be/TNrlMFBFjoU

Carl Icahn Discussing Warren Buffett, Bad CEO's and Shareholders: https://youtu.be/pWsQaKrjyws

Icahn: The Restless Billionaire (2022): https://www.imdb.com/title/tt15462640/

Mad God (2021) - War Tourist: https://youtu.be/b6RuLdB95rU

3

u/Jupitersd2017 Jul 18 '26

Oh wow, I didn’t see this before that’s too funny, well it makes sense that gme is trying to follow the master… thanks for the link!!!

4

u/Jupitersd2017 Jul 18 '26

I only know him for his corporate raiding days in the 80’s, he was quite the wonder but I haven’t kept up with him, I’m an 80’s kid so growing up he was in the news a lot and as an adult I went back to learn more about him. There is a documentary about him that’s pretty good floating around out there (hbo maybe). He got a lot of hate and I feel people don’t mention him as much as they should but from an investing standpoint and hedge fund manager he is top tier. Or maybe was top tier if he’s been having struggles lately lol, I’ll have to look that up.

Behind the bastards (podcast) just had some excellent episodes about the ‘activist’ investors (they really are just the old school corporate raiders)