Welcome back to the channel everyone today, i want to discuss whether citadel have really covered their short position. Can the hedges actually escape without the squeeze and can the hedges just cover their synthetics in a dark pool? Well, stay tuned and let's make some money, and i've also got a bit of an urgent public announcement for tonight's video. I finally found what i think is the single most important piece of data for the amt squeeze like when i tell you, i've been looking for this data every single day for months, i'm not kidding so be sure to watch tonight's video. If you haven't already got that notification bell, dinged i'll, give you a few seconds just to scroll down to the description and ding that notification bell, so that you don't miss tonight's video.

Okay. So now, on to this morning's video have citadel actually covered their short position and sold off all their put options. Can the hedges actually escape without triggering the squeeze and can the hedges just cover all of their shorts and synthetic shares in the dark pool? Now this video also links into my video from yesterday, where i looked at whether amc can really hit a hundred thousand dollars per share. If you haven't already seen that video be sure to watch this video first and then go back and watch that video from yesterday.

As it all links together and now i want to dive straight in with the key information, so i think we need to look at this from two separate angles. Angle, one have citadel covered their shortage shares and how do they do it and angle b have citadel sold off their put positions and again, how did they do that now? Obviously, this poster on reddit brings up that. Lou has said that citadel has moved on and is out of amc. Does that mean they don't have any shortage shares, or does that mean they also don't have any put positions remaining? He says i guess we'll find out when this hits 100k.

On top of that, ken griffin is also quite well renowned for lying and therefore he may have not covered his put positions and his short positions whatsoever. He may have just told people on the street, so let's talk about the options first, obviously the put options are much more black and white and much more difficult to manipulate. Obviously, citadel don't have to report how many shortage shares they're, actually holding and also don't have to report how many synthetic shares have been created. But obviously, what citadel do have to report is how many put options they're currently holding and the value of those options as well from citadel's latest 13f filing, which is filed in september of 2021.

They have 7.1 million calls, 5 million puts and 33 000 shares of amc. Obviously, the easiest way to know if citadel has sold off all of their puts is to wait until the next filing the december filing, which will be out in a matter of a few days. Now, you might say well tom what, if citadel, covered their put position after december in the first few weeks of january. Obviously, that's very possible, in which case we'll find out closer to april may time.

But the question i have is how exactly would citadel have got rid of five million per options? The opposite to buying five million per options is selling five million options, so obviously citadel would have to sell five million puts to get out. Obviously, citadel can't just delete these options. They need to sell off these put options to somebody else. There need to be two people on either side of the trade.

Obviously, you've got citadel selling, five million puts so you need somebody else or other people to buy five million puts. But the question i have looking at the amc chart is who is going to buy these put options from citadel and bet that the amc stock is going to fall? Even more are regular retail investors like you and i gon na, buy these put options from citadel and bet against amc at its one year, low level at around twenty dollars per share. Obviously the answer is no. We wouldn't buy options on amc and bet against amc at any level whether it was 72 a share or only 20 a share, but again are other hedge funds really gon na bet against amc at this level.

Fair enough, maybe there would have been some hedge funds, betting against amc and taking out, puts at 72 a share, but the hedge funds really think that amc is going to fall further than 20 a share and if they did think that amc was going to fall Further than 20 a share, i'm sure they probably would have already loaded up on, puts at the fifty dollars a share mark the forty dollars a share mark or the seventy dollars a share mark. They probably won't have much or any capital left to be buying more options right now, when amc is only at twenty dollars, fair enough, it somewhat makes sense to short a stock from its very tippy top position, but it doesn't make sense to shorter stock when it's At the lowest it's been in over 50 weeks, so i think, it'd be very, very difficult and very very unusual for citadel to sell off 5 million options literally overnight and not hear anything about it. I think. Not only would they struggle finding a hedge fund to buy five million options and bet amc was gon na fall with around 200 million dollars, but on top of that it would also be difficult for them to get the deal done literally overnight or over the weekend.

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The second way to look at this is from the share position, obviously, that one's much harder citadel don't have to report their shortage shares so we'll never really know if they have or haven't closed out of their short position and their synthetic short position. Now it seems weird, it seems unusual and it seems very difficult for citadel to close out of their shortage shares and synthetic short position. But, as lou said, maybe citadel struck a deal with the sec. Now you might ask what would this deal consist of? Could the sec just go in and delete citadel's shortage shares and all of their synthetic shares instead of making them cover their shares and buy them back? Could the sec just delete them all and again, i don't think that's a possibility.

Otherwise, millions of you would have woken up this morning. Looked at your trading accounts, whether it's on fidelity or moomoo or weeble, or robin hood or td ameritrade, or whatever platform you're using. You would have opened up your trading account and you would have seen all of your amc shares deleted and all of that money gone now. The fact that i haven't had thousands and thousands of comments on my videos reporting that all of your amc shares have been deleted, leads me to believe that the sec hasn't struck a deal with citadel and deleted all of their shorts.

Now it is possible that citadel could have struck a deal with the sec and with some other hedge funds in order to transfer their shorts. That citadel was currently holding over to other hedge funds, but why would this happen and how would it work and why would it be the case now this poster on reddit has some excellent speculation, citadel selling their position theory and why it could be a critical reason That the squeeze has been held up, and he says so assuming rule on the same page, with amc being a managed squeeze. That being said, what are they waiting for to pull the trigger on this bad boy squeeze if citadel the market maker goes down, then most likely take the market with them. Now, obviously, that's exactly what lee was saying.

Lou is saying that, obviously, if citadel goes down citadel with a market maker goes down as well, and that would bring down the entire market with it as well. So maybe citadel struck a deal with the sec to avoid citadel going bankrupt. Now it sounds possible. Banks get bailed out all the time.

Look what happened back in 2008! It may be that citadel are getting a bailout in order to avoid crashing the entire economy. We already see the state of the current economy and inflation and the government could just not allow that to happen. Perhaps a deal was made with other hedge funds that know they're not walking away from this regardless, and they agree to take on that toxic position. Obviously, there's many over leveraged short hedge funds that are going to be burnt and are going to be liquidated when amc squeezes.

They know that they're going to be liquidated, so maybe they've just taken on all of citadel shores in return, maybe citadel, and maybe some of these other hedge funds will see some extra cash and a chance to rebuild. After all of this is said and done, if citadel have offloaded their toxic short positions to other hedge funds that are already in a toxic position, it means that it's less funds to liquidate, and it also means a faster trip to the insurance company that may or May not pay us what you want. Obviously, it's way easier to liquidate one or two or three hedge funds, instead of having to liquidate 10 or 20 or 30 hedge funds. Maybe some of these hedge funds, like citadel, have been offloading their toxic shorts onto other hedge funds.

That already know they're gon na bankrupt. He says it's a messed up way of looking at things, but let's keep in mind that these guys also got bailed out in 2008. So it's not outside the realms of reality. Now i think this is actually a possibility.

I think it's possible that citadel has transferred their shorts from themselves onto other hedge funds. I don't think it's a possibility that citadel have covered their shorts and have exited the market entirely. Now we know that citadel haven't covered their shorts because we just haven't seen that kind of volume. We know that citadel have hundreds of millions of shorts if not billions of shorts, and we've only seen volume in the 20 to 30 million shares a day.

Yes, okay, there was this day back here where there was 144 million shares traded and we had an okay price move from around 24, a share all the way up to around 30 a share, but obviously that's only 144 million shares of volume and a lot of That volume would have also been selling volume as well and buying from other people like other retail investors and other individual hedge funds as well. So obviously, there's definitely not enough volume here for citadel to cover billions and billions of shorts and there's also not that same price response as well. If citadel did cover millions and billions of shorts, the price of amc would have spiked to hundreds and hundreds, if not thousands and thousands of dollars per share. Now i think this leads me on quite nicely to whether hedges can actually escape and whether hedgies can cover their shorts in a dark pool, and i think the easy answer here is no: they can't escape the sec, can't just delete all of their shorts.

They have to actually cover them and buy back those shares. Obviously, we haven't seen that massive spike in volume that would correlate to them covering all of those massive short positions and therefore we can assume that so far they haven't covered, and you might say well can't they just cover in a dark pool. And then you won't really see the volume. Maybe it's not reflected on the tape they get away with it easy peasy.

But you have to remember that retail investors, like you and i can't trade in a dark pool on top of that retail investors aren't selling their shares and therefore there's no real shares in the dark pool for the hedges to cover their shorts with or to even Cover their synthetic shorts with when a market maker creates these synthetic shorts. Maybe it creates them and gives them to the hedge fund in an otc market or in the dark pool. But when that hedge fund then shorts, the shares it shorts them on the lit market and we end up buying them lit, therefore we're holding the shares, we're holding the real shares and the synthetic shares and obviously the hedges need to buy them back. We can't sell them to the hedges in a dark pool.

We can only sell them on the lake exchanges. Now i guess you could say well. We kind of can sell them in the dark pool, because if we sell them to weeble, then it gets put through the dark pool. But obviously, if we are gon na sell our shares or when we sell our shares during the squeeze, we'll be selling them through lit exchanges through brokers like fidelity and therefore there just simply isn't any shares real shares or synthetic shares in the dark pool.

For these hedgies to cover them with and again you could say well can't the market makers just create more synthetic shares and the hedges can use those synthetic shares to cover their shorts and their synthetic shorts. But again it's just kind of going around in circles, because you're creating more synthetics to cover previous synthetics. It's like saying i have five apples and to get rid of some apples. I'm gon na buy three more apples and then get rid of three apples.

All i've done is had five apples bought in an extra three and got rid of three and i'm still left with five apples and therefore there's no way for the hedges to cover their shorts and their synthetic shorts in a dark pool. Because to do that, they'd need to create more synthetic shorts and they'd just be covering old synthetics with new synthetics and the number just doesn't change, and therefore the only way they can get their hands on some real shares or even get their hands on synthetic shares Is by buying them back from us, because, obviously we hold the real shares and we hold the synthetics guys be sure to. Let me know down in the comments below whether you think citadel have really covered their short position and whether you think that their hedges can actually escape 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.

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