Today I Want to talk about whether Amazon is just about to buy out AMC causing the squeeze or when this is just another fun article to try and bait you into buying short dated call options so the hedges can run the price up and crush it back down, stealing your option premium. So stay tuned and let's make some money. And now I'll arrive straight in with the key information. So at first I thought this was absolute rubbish as the rumor is started by none other than Charles Gasparino.

He said it looks like Amazon likes AMC as a distressed asset, saying that Amazon considers buying distressed AMC Theater chain in a seismic Hollywood streaming shift at first I saw way too many similarities to this article. Any Ogs will remember. This article used to come up pretty much every single month back in 2021 and 2022.. this article is titled Amazon Dubai AMC and negotiations have just been reopened.

We first saw this article back in April of 2021, then again in July of 2021, August of 2021, and again in March of 2022. Obviously, this article was absolutely rubbish. It's not written by a reliable mainstream media Outlet If such a thing exists, it's written by today's Five.com and basically they've just regurgitated the same article every few months year over year. On top of that, Charles Gasparino isn't really the most reliable source of information.

In fact, if anything, he just spreads fart. And as Paul D points out perfectly, this may have just been an opportunity for Charles Gasparino to try and encourage AMC Apes to take the bait and buy some short dated call options. and in some senses, it did actually work as Astro tweeted: the AMC call options were coming in hot yesterday. As we can see from this chart, we saw a massive increase in call options at around 11AM and the call options continue to run up after Charles Gasparinos tweet as the price started to take off.

So clearly many Apes were indeed baited into buying short data call options after reading Charles Gasparino's tweet. so I think overall initially the fact that it was tweeted by Charles Gaspriano and the fact that it Bears so many resemblances to that old rubbish article it was initially telling me this is entirely made up fudge to bait us into buying options, but then I was considering and I thought maybe there's something else behind it. Could this Amazon article just be a cover-up for something else? a simulation ape Nation tweeted he pointed out that it might actually not necessarily be a hundred percent thud, but it may be a tiny tiny hedge fund covering and using the Amazon article as an excuse, he tweeted saying this is covering maybe a baby baby baby shark, but definitely covering because it's not retail interest and it seems far too inorganic, especially as most of the retail investors know not to be baited into anything spread by Charles Gasprino. This isn't really retail volume as volume picked up massively as soon as Charles tweet it.

and therefore, if it's not retail volume, it's obviously institutional volume and it may have been a tiny hedge fund closing out of their position as I suggested they would do or another hedge fund potentially transferring their position I Said now that GameStop is profitable and soon to be AMC as well. The short thesis on GameStop and AMC makes less and less sense and over the next few months we are going to see smaller and smaller hedge funds closing out of their shorts. We're going to see these small guys closing out of their shorts because they know the short thesis doesn't make sense and they can escape without too significant a lots. Obviously, the big boys don't want to close out their positions because they know that it would bankrupt the fund and therefore, when these smaller fishes do close out of their short positions, the big guys need something to distract away from what's actually happening.

Therefore, instead of posting articles saying that a hedge fund is closing out of their AMC short position because they know that shorting AMC is a bad bad idea there. Instead, they're just going to cover it up with foot articles potentially like this article. Guys, be sure to sign up to MooMoo the sponsor of today's video by signing up using the link in the description below. you can currently get up to a whopping 17 free stocks.

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our suspended POS tweet that he said. so let me guess. edges need an excuse to hide from getting vaporized and embarrassed. So they need Jeffy Boy's Escape goat to spread fud about an acquisition.

So therefore, maybe actually this article was used as a cover-up for one of those smaller hedge funds exiting their position without drawing too much attention. If H started to realize that hedge funds are genuinely closing out of their short positions, it will effectively rile up the Apes to buy buy even more shares, pushing the price up higher to the point where these Hedges would lose control. Therefore, they're effectively trying to throw us off the scent and effectively cover up that price rise. That could have been a smaller hedge fund covering with the third Amazon news.

But then I was wondering and also reading further into this article as to whether there could actually be a genuine reason for Amazon to buy AMC and if there was such a reason for Amazon to buy a MC how exactly would impact AMC and whether it would cause the squeeze. But I Do want to talk about this specific article in detail and also go through some of the rationale as to why Amazon might actually be looking to acquire AMC in a buyout. You'll see later on in this video that actually Amazon acquiring AMC does make a lot of sense and it would also cause the squeeze a lot away. So the article posted by Charles Gasparinos says that Amazon may buy distressed AMC Theater Chain in a seismic Hollywood streaming shift this is Amazon founder if Bezos has dispatched his investment advisors and Top Entertainment Chiefs to explore acquisition plans for embattled theater chain AMC Entertainment According to multiple senior sources familiar with the discussions, one: Amazon Insider said that AMC Theaters would be used as a form of marketing way stations they'd be used for promoting Amazon Prime Movies for awards contention, cross-selling services such as grocery delivery, serving as local distribution hubs, and collecting crucial data from AMC's annual moviegoing customers.

But they've said to be sure to be clear, these are internal discussions being held inside: Amazon The company has mold making an acquisition in the theater space since launching Amazon Prime Video back in 2006 and actually is a prime example. last year back in, December Amazon actually opened their first movie theater and plans a billion dollar push to release films in cinemas Amazon opened a brick and mortar theater in Culver City reopening the former ArcLight Cinemas in Culver City's downtown last week. So clearly, if Amazon are already opening theaters and planning to open more, it's surely way easier just to buy out. AMC That way, they've already got an established theater network with employees and with all the connections necessary and Biotechnose has actually pulled together some due diligence regarding the rumor resurfacing of Amazon buying AMC He said if you are building a low orbit satellite streaming to home and theater Enterprise globally, you might desperately need AMC 2.

So it seems this rumor originally started back in May of 2020, when Amazon first announced its plans to buy AMC Theaters Amazon have already slightly divested creating satellites to stream 4K quality video and movie content to both theaters and homes, and they're also quickly building up this satellite platform for Global Internet delivery through numerous parts chips. Therefore, if Amazon is trying to expand their Global streaming delivery service for not just the internet, but for theaters as well, surely they need AMC Theaters And as I've spoken about on the channel before, if Amazon were to buy out AMC, it would also likely cause the squeeze shorts are advised to close out of 100 of their short positions pre-buy out to make the buyout process easier, and especially if any shorts and AMC were to be transferred into shorting Amazon after the buyout. That obviously wouldn't work too well for the shorts either. Having synthetic shorts on AMC is one thing, but having billions of synthetic shorts against Amazon is a whole different ball game and therefore it's locally.

All of these short positions, including the synthetic short positions as well would be closed out of before the acquisition if not during the acquisition and that ultimately would cause the squeeze as all Shorts would be covering all at the exact same time causing a rocket in the AMC price. But guys, to let me know what you think down in the comments below and as always, guys, be sure to ding that notification Bell because that way you'll be alerted when I upload a new video. Cheers!.