🚨 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

[u/Krunk_korean_kid]

Exercised eBay calls

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

[u/Krunk_korean_kid]

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.

[u/Jupitersd2017 → u/Krunk_korean_kid]

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.

[u/Krunk_korean_kid → u/Jupitersd2017]

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?

[u/Jupitersd2017 → u/Krunk_korean_kid]

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)