<p><img src="https://static6.businessinsider.com/image/5ff74aa6d184b30018aad91a-2400/2020-04-22t020606z_2_lynxnpeg3k225_rtroptp_4_social-capital-ipo.jpg" border="0" alt="FILE PHOTO: Chamath Palihapitiya, Founder and CEO of Social Capital, presents during the 2018 Sohn Investment Conference in New York City, U.S., April 23, 2018. REUTERS/Brendan McDermid/File Photo" data-mce-source="Brendan McDermid/Reuters" data-mce-caption="FILE PHOTO: Chamath Palihapitiya, Founder and CEO of Social Capital, presents during the 2018 Sohn Investment Conference in New York"></p><p></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><ul><li><strong>Billionaire investor Chamath Palihapitiya has sold his call options in GameStop, according to an interview with CNBC on Wednesday.</strong></li><li><strong>Palihapitiya had purchased the options on Tuesday after asking his Twitter followers what he should "throw a few 100k at."</strong></li><li><strong>Palihapitiya said he will donate all of his gains and principal from the trade to David Portnoy's Barstool Fund.</strong></li><li data-stringify-indent="0"><strong data-stringify-type="bold"><a href="https://newsletter.businessinsider.com/join/4np/10-things-opening-bell'utm_source=markets&utm_medium=ingest'utm_source=markets&utm_medium=ingest'utm_source=markets&utm_medium=ingest'utm_source=markets&utm_medium=ingest'utm_source=markets&utm_medium=ingest'utm_source=markets&utm_medium=ingest" target="_blank" rel="noopener noreferrer" data-stringify-link="https://newsletter.businessinsider.com/join/4np/10-things-opening-bell" data-sk="tooltip_parent">Sign up here for our daily newsletter, 10 Things Before the Opening Bell</a></strong><strong data-stringify-type="bold">.</strong></li></ul><hr><p>Billionaire investor Chamath Palihapitiya scored big on his bullish call option bet on <a href="https://markets.businessinsider.com/stocks/gme-stock">GameStop</a>, and is now going to donate both the profits and principal from the trade to David Portnoy's Barstool Fund.</p><p>That's according to an interview with CNBC's Scott Wapner on Wednesday, in which Palihapitiya said he sold his position this morning.</p><p>On Tuesday, <a href="https://markets.businessinsider.com/news/stocks/chamath-palihapitiya-gamestop-investment-buys-115-call-options-reddit-wallstreetbets-2021-1-1030005801">Palihapitiya had tweeted that he purchased</a> 50 out of the money call options on GameStop, worth about $125,000. Since the tweet, shares of GameStop had soared more than 300%, resulting in big gains for Palihapitiya's call option bet. </p><p>The $115 February 19 call options that Palihapitiya had bought were trading around $25 per contract on Tuesday morning, today they are trading above $200, representing a one-day gain of more than 700%.</p><p>Palihapitiya said the trade was a learning experience, as he gained a front row seat to the thought process of many retail investors who have been congregating on Reddit's WallStreetBets forum. </p><p>Palihapitiya walked away from the forum <a href="https://markets.businessinsider.com/news/stocks/chamath-palihapitiya-wallstreetbets-traders-analysis-hedge-funds-gamestop-retail-stocks-2021-1-1030011632">impressed and defended its members,</a> arguing that WallStreetBets traders can do the same fundamental analysis as hedge fund managers.</p><p>Additionally, Palihapitiya said on CNBC, "I ended up closing out my position this morning, and I wanted to announce that I'm taking all the profits that I made plus my original position, I'm going to take $500,000 and I'm going to donate to the Barstool Fund for small businesses."</p><p><em><strong>Read more:</strong> <a href="https://www.businessinsider.com/cathie-wood-ark-invest-analysts-top-10-stock-picks-q4-2021-1'utm_source=markets&utm_medium=ingest" target="_blank" rel="noopener" data-analytics-position="1" data-analytics-module="">We're very surprised we didn't underperform in the 4th quarter': Cathie Wood and her analysts break down their stock-selection process and the top 10 picks that contributed to the outperformance of ARK ETFs in Q4 2020</a></em></p><p><em><img src="https://static1.businessinsider.com/image/6011c6be1d2df20018b71323-841/gmeeeeeee.JPG" border="0" alt="gmeeeeeee.JPG" data-mce-source="Markets Insider"></em></p><p><a href="https://markets.businessinsider.com/news/stocks/chamath-palihapitiya-sells-gamestop-position-stocks-latest-surge-reddit-shortsqueeze-2021-1-1030011762#comments">Join the conversation about this story »</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/melissa-maker-clean-your-home-quickly-cleaning-expert-2017-4">A cleaning expert reveals her 3-step method for cleaning your entire home quickly</a></p>
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