Welcome back to the channel everyone today, i want to talk about whether exercising calls could be the way to the moas. I also want to talk about the cclf cap reset and what that really means so stay tuned and let's make some money, and now i want to dive straight in with the key information. So dr marco metzler, tweeted, saying amc and gamestop an active option. Market is needed to make the moass happen.

He said brendan recently came across a coherent theory that i am supportive of and would like to share. He said our chagon capital opened options up to 72 dollars a share with dirt cheap premiums. The option chain in late may for june, monthlies and beyond was absolutely packed back at the start to late may everybody saw that amc was doing very well and breaking out of 801. Therefore, everybody back in may and june was jumping on those 15 20 40.

Maybe even 60 call options and, above before amc broke through that 801 area. The premiums on those options were very, very cheap and therefore the option chain was absolutely stacked, but obviously for a lot of the time period. In june july and august, the premiums were very, very expensive on calls and the option chain wasn't nearly as stacked in comparison. Looking at the current option change for the moment, the january 2022 calls are stacked, but a lot of time before and after that isn't nearly as packed as it was back in may and june.

He said the same thing happened with sprt a few months ago. Both stocks stormed to the top of the options chain ran a little above it, but then ran out of gas, because people obviously can't buy millions of shares at 50. A share every minute like they could at cheaper prices, but they could thanks to the leverage of options at these moments. He believes that when an option chain is loaded up in this way, it really is a stick of dynamite for higher numbers.

Marco metzler believes we probably won't see an amc spike like this again, unless the option chain becomes absolutely ridiculous. So why is that the case? Well, obviously, when everyone picks up these really really cheap options and then exercises those options and gets tons and tons and tons of amc shares. It obviously means that the market makers have to hedge for all of those shares and go into the open market and buy all of those shares and pass them along if tons and tons and tons of people are exercising those options on mass, which is obviously the Equivalent to buying a hundred shares on mass that brings massive amounts of volume to amc and gamestop and would obviously push the price up. He believes the stop buying options.

Movement has screwed us because without that kind of monstrous leverage, i'm not sure we can overcome the deep pockets of our opponents. Who will use that leverage against us now, there's two things here. I want to clarify on or specify because i don't think it's completely accurate. I don't think anyone was trying to ever push to stop buying options, full-time theory, more just stop, buying options with zero days to expire or one day to expire, basically, on thursday, don't pour tons and tons of money into the options that expire on the friday afternoon.

Obviously, buying options with say a six month expiry or a one year. Expiry is a very good idea or when amc is breaking out buying options at that point is a very good idea, but when amc is falling, it's not a great idea to buy the 145 calls that expire in two hours time. I do think that in general buying options is a very good idea, just not necessarily buying the options on a friday midday to expire in a few hours and when he says i'm not sure we can overcome the deep pockets of our opponents. I don't really think that's too accurate or too appropriate either.

I personally believe there's two main ways. The amc squeeze will happen. Obviously the first way is tons and tons of volume miraculously returns to amc for no real reason and all of a sudden. Tomorrow morning, amc shows 900 million shares of volume traded and the day after we show 1.5 to 2 billion shares of amc traded and then the squeeze obviously just happens.

Obviously, if tons and tons of buying volume like that returns, it will naturally push the price of amc upwards and naturally cause the shorts to cover, but i don't really think that's just gon na magic itself. Out of nowhere, i think the most likely thing at the moment is the wider market is gon na cause margin, calls which impact those short hedge funds causing their entire portfolio to be liquidated and their amc short positions to be covered. Obviously, the covering of that many shares and that many synthetic shares and naked short positions that we don't quite know. The exact figures of right now will cause the amc squeeze, because it will mean that hundreds of millions, if not potentially billions of amc shares, will have to be bought back in order to liquidate their portfolios.

Right now, mumu are currently giving away an iphone 13 pro and many other goodies every single day this month, on top of the usual five free stocks, valued up to 17 500, when you sign up with moomoo using the link in the description below those five free Stocks have valued up to 3 500 each. You get the first free stock when you sign up the second free stock when you deposit any amount, even if it's only a single dollar and the final three remaining three shares when you deposit two thousand dollars and also be sure to deposit at least a hundred Dollars and check back in the messages section on moomoo every single day to see if you've won that iphone 13 pro or the other goodies. This is basically your opportunity to be your own santa and to get an iphone 13 pro for free every single day. This month, until christmas, but anyway carrying on he says, if we start stacking june 2022, calls now or maybe the january 2022 calls or some other call options right now and thereafter, until we had an absolutely loaded chain at every strike between 26.90, we had probably managed To get this thing to run to triple digits sometime between now and then he says that option chain in may was stacked with retail and ape leverage.

That's how we got the stock to run. The call chain for gamestop in january was also stacked. Hence the run on dumb numbers and the forced deactivation of the buy button. He said thomas pettiphy, the chairman of interactive brokers himself, is quoted as saying that if more people had exercised their calls in january, the system would have cracked and collapsed.

Now. If i remember rightly to that interview that thomas pettafie did, he said, obviously that gamestop has 10 million shares, but there was around 100 million shares in call options outstanding at that point. Obviously, if those 100 million shares and call options were all exercised, there would have been no way the squeeze would not have happened and obviously the market would have cracked and collapsed. So that's effectively exactly what we need.

If we can get say, billions of shares in amc call options ready to be exercised. Then, when that time comes and when people do start exercising them on mass, all of those shares have to be bought and the squeeze will happen and he says, and why specifically didn't the system crack and collapse? And that's because people bought millions of options contracts but didn't exercise them. If people had known to demand their shares, the system would have collapsed. Thomas peterby said: if you really wanted to have a short squeeze, that's what you would have done.

That's obviously a quote directly from the head of a major brokerage firm talking about calls and not specifically about drsing or anything else. While i do agree, this is a very valid theory and if we could stack that option chain so so heavily full the squeeze would happen. I just don't think the option chain is going to magically stack itself full with hundreds of millions, if not billions, of shares with no real catalyst. It's not just going to happen for fun, and it's not just going to magically poof out of nowhere now.

I also want to talk about some hilarious amz fudd, that's being spread by pro trader mike. He says i went to see spider-man yesterday in the movie theater and it was completely empty. So i don't see how amc is going to survive. He said, bag holders are in trouble for 2022, as mojo traders are laughing all the way to the bank.

Now, obviously, that was immediately dispelled by kazi, saying, regardless of what theater a the lights are on indicating a very early arrival number two. The footage on screen is not a wide shot and therefore it's not in preparation for trailers or previews. It's just ads and number three, the footage being played, looks like food and is there for a commercial, and he said next time show the movie ticket or show the theater at the time of the show he could have just arrived to a random film. That's been shown many many times already way way early and that's why the theater wasn't packed out.

I also find it funny that pro trader mike is bragging about his personal paid investors laughing all the way to the bank when pro trader mike has been pumping wish. Since, like over 10 to 15 dollars a share, obviously, if you didn't already know which is currently trading under five dollars, meaning that his paid investors are currently down 66 percent and not up over 500 percent, like some amc investors are, i also wanted to quickly touch On the sheer number of shills and bot accounts that i've been seeing in the youtube comments and kash has touched on the sheer number of shills and bot accounts that he's seen on weeble and on twitter. He says you know they're desperate when they make a rookie coding mistake with bot accounts. Here's a computational error from a bot account on weeble.

If we scroll down, we can see a comment from an obvious spot account saying: amc will never reach brackets percentage. Four time weekly high percentage brackets again, i advise you all to sell now. I am also wondering if amc will ever reach brackets percentage underscore 4wk underscore h. I g h percentage colon close bracket ever again if the price of amc ever gets that high.

The price turns into letters numbers words and colons and brackets well. We know we've done the right thing when i start seeing underscores brackets and percentage signs in my amc price. I know that that too is probably the time to sell. Now it looks like lamborghini is also ready for our amc price to read like a phone number saying the day is getting closer hashtag to the moon.

This is the second moon related tweet that lamborghini have posted and therefore even they know that amt squeeze is close. Clearly, their marketing department is ready for a sudden inflow of new amc investors all wanting to buy lamborghinis at the exact same time, and i also wanted to quickly touch on this cclf reset reminder issued by the dtcc and what that actually means. This is the fixed income. Clearing corporation's government, securities division or gsd will reset each netting member's individual total amount, cclf cap on january 3rd 2022.

Now some are basically thinking that this means that shorts have to close their positions on january 3rd 2022 and i don't think that's 100 accurate. So first we've got to explain what all of that actually means. What is a cclf facility? Well, the sec has approved dtcc's capped, contingency liquidity facility or cclf, which creates overnight repos between the ficc and each of dtcc's, solvent firms so that, if a firm fails, the funding to offset its portfolio would be sourced across ficc's membership, rather than being dependent on an Expensive long-term line of credit, or in other words the ficc, has proposed a rule change to establish the creation of a capped, contingency liquidity facility or cclf. That would require solvent members of the gsd to fund the portfolio of a failed participant family during the liquidation process.

Of that participant family, basically, it's just another kind of dtcc insurance or liquidity facility, where, if one member fails, all of their liabilities are effectively spread between the rest and the rest of them cover that guy, while he's being liquidated now, there's also a test that happens On a daily basis to determine if any members have actually defaulted and need to utilize that cclf facility, this reset will result in changes in the individual total amount or the cclf cap. Basically, each member has this test or this cap, and if they breach that cap, then obviously they're classed as a defaulting or a liquid member. That needs to be liquidated, and each of these members after the reset are going to get a new individual total amount or cclf cap based on a look back period, so their operations over the last few months and their total. I don't know sales income losses will be determined to calculate this new cap, so the reset will reflect a look back period of july, 1st 2021 to december 31st 2021 and that new cap will be effective as of january 3rd 2022.

So it's basically like another form of capital requirement. Obviously, if they fail this liquidity requirement or this capital requirement or this cclf cap, then obviously they're classed as in default and get liquidated. So i don't necessarily think that all shorts have to close their short positions by january 3rd 2022. But on this date there is going to be a newer, probably larger, cclf cap, or you know larger capital requirement that they're going to have to meet and obviously if they fail that large requirement, then they do get liquidated.

So while this could result in shorts being liquidated and forced to cover their positions, i don't think that this reset reminder will cause all of those shorts to be liquidated and forced to cover guys be sure to. Let me know down in the comments below what impact do you think stacking the option chain could have on amc? If we stack the january 2022 options, do you think that could cause a squeeze before the end of january and as always guys, if you enjoyed this video, be sure to check out some of my others? Alternatively, subscribe to the channel and ding that notification bell, because that way, you'll be alerted when i upload a new video cheers.