Welcome back to the channel everyone today, i want to talk about how the fed is preparing for the amc squeeze. I also want to talk about the january 2022 out of the money, put options that are expiring in the not too distant future and how this is going to cause these hedgies to either roll all of those put options if they can afford it or buy back Tons of their synthetic shorts so stay tuned and let's make some money, and now i want to dive straight in with the key information. So the fed is getting its ducks in a row for the next wall street bailout they've, quietly added goldman sachs and citibank to its new 500 billion dollar standing repo facility, which is separate from the overnight repo facility. So this here, which you've seen before is the overnight repo facility at the moment it's uncapped currently somewhere between 1.5 and 1.75 trillion dollars, but there's a huge amount of parties involved over 80 parties, each averaging only around 20 billion dollars of usage.

But this new 500 billion dollar standing repo facility is so far for only three banks: goldman sachs, citibank and the new york branch of mizuho bank. That means that each bank has over 175 billion dollars of usage that they can utilize. Last friday, with the public's attention. Diverted to the pandemic, the federal reserve bank of new york quietly announced in a one-sentence statement that it was adding the following: three federally insured banks to its list of counterparties for its newly minted 500 billion dollar standing repo facility, citibank, goldman sachs and the new york Branch of mizuho it says if you're stunned at mizuho, a japanese bank is able to have federal deposit insurance backstopped by the u.s taxpayer.

Welcome to the world of borderless global banking for the one percent. It says these three banks have a number of things in common number. One. Each financial institution already has a broker-dealer affiliate.

That is already one of the fed's 24 primary dealers that participate in the fed's overnight. Repo operations number two: each of the three banks primary dealer affiliates took large secret loans from the fed's repo facility when credit collapsed on wall street in september of 2019 and number three, all three institutions have trillions of dollars in exposure to derivatives. I've shown you that screenshot before showing you the 24 largest and most overexposed banks, it says if all three banks already have broker dealer affiliates participating in the fed's overnight repo loan facility. Why would another affiliate be added? The first thought that comes to mind is the fact that the fed puts a daily cap on the dollar amount that each counterparty can borrow per day.

Obviously, at the moment that average borrowing cap is somewhere around 19 20 21 billion dollars and therefore there's a number of banks that need to buy more, but at the moment khan, it says why would these three banks need to have a sugar daddy at the fed To loan the money in a financial crisis, because all three banks have huge exposure to derivatives, it says that from the latest report, goldman sachs has 387 billion dollars in assets versus 48 trillion dollars in notional derivatives. That's the bank that was 120 130 times leveraged. So not only is the fed running their overnight. Repo facility they've also created another repo facility with much more money that can be utilized for these risky banks, so they can be safeguarded in the event of another recession or stock market collapse.

And i personally think that this is the fed preparing for the amc squeeze, because we know that when many of these short hedge funds get liquidated when their short position is squeezed, they'll be forced to sell off all of their long positions as well, which could crash The market or is likely to crash the market, and, alternatively, if the market does crash beforehand, that market crash is gon na cause these hedge funds to fail their margin, calls and they'll be liquidated and forced to cover their amc shores. This is effectively the fed coming in and picking up the pieces and lending as much money as possible to avoid some of these major banks going under and losing regular everyday american savings funds, guys if you haven't already be sure to sign up with moomoo using the Link in the description below to get five free shares, valued up to 3 500, each that's up to 17 500 in free stocks. Just for signing up and making your first deposit, you get the first free stock. When you open your account, you get the second free stock when you deposit any amount, even if it's only a single dollar, and you get the final three remaining three shares when you deposit two thousand dollars now, you may have also recently heard about stock chills or Stock freezes that can be implemented by the dtcc, so i wanted to talk a little bit more about that.

So occasionally a problem may arise with the company or its securities on deposit at the dtcc or dtc. In some of those cases, the dtc may impose a chill or a freeze on all of the company's securities. So a chill is a restriction placed by the dtc on one or more of dtc's services such as limiting a dtc participant's ability to make a deposit or a withdrawal of the security at dtc and a freeze is the full discontinuation of all services at the dtc Freezes may last a few days or an extended period of time and again, a chill is also likely to stay there for a few days, or also for an extended period of time as well. Basically, the main difference between a chill and a freeze, a chill, is the discontinuation of one service, whereas a phrase is the discontinuation of all services.

This paragraph, i think, is the important one. Dtc imposes chills and freezes on securities for various reasons. For example, the dtc may impose a chill on a security, because the issuer no longer has a transfer agent to facilitate the transfer of the security or the transfer agent is not complying with the dtcc rules in its interactions with the dtc in transferring the security and Also chills and freezes can be imposed on securities for more complicated reasons, such as when the dtc determines that there may be a legal regulatory or operational problem with the issuance of the security or the trading or clearing of transactions involving the security. For example.

The dtc may chill or freeze a security when the dtc becomes aware or is informed by the issuer. Its transfer agent, federal or state regulators or federal state law enforcement officials that the issuance of some or all of the issuer securities or transfer in those securities is in violation of state or federal law. Maybe if there's tons and tons of synthetic shares being issued or incorrectly issued, then the dtcc can freeze or chill the amc stock until it's resolved. If the dtc suspects that all or a portion of its holdings of a security may not be freely transferable, as is required for dtc services, it may decide to chill one or more of its services or place a freeze on all services for the security.

Now i also want to talk about all of these options that expire in january 2022, how they interact with the divorce, put theory and what's actually going to happen in january 2022 when all of these puts expire worthless. Obviously you can see right here. There's 257 000 options a lot of those down at one dollar, two dollars: three: five, ten dollars that are going to expire worthless. So, what's gon na happen, william tola says the secret ingredient is crime and it always has been.

He says: wait until all of those 50 cent and one dollar options bought by the hedges last year have to be rolled over in january 2022. All hail will break loose. So there's a brief explanation here from one of the mods. He said, okay, so the options typically out the money options are used to beef up collateral.

Among other things, these are typically used in conjunction with shorts, and these were extremely cheap. Earlier this year, as the lowest you could go was 50 cents or a dollar those extreme low option. Prices were taken away, so when these expire worthless, they will have to roll these over to higher strike price puts and the cost will be much much more expensive to execute. Not only will the hedges lose all of the money they put into these 257 000 out of the money options, but they also have to roll them over to later put options which will cost them more money and will likely also expire worthless.

Maybe these down here in january 2023, there's a bit more of a more descriptive explanation here on super stock relating directly to gamestop, so these numbers aren't going to be related to amc. But the explanation is the same. He says just in case. Anyone forgot back in the january run-up and the june run-up for amc.

Sharks hid their positions with a poop load of puts and options malarkey there's over 315 000 puts for gamestop that expire on january 21st and 257 000 options for amc. They expire on the same day as there's a hundred shares per options, contract that comes out to 31.5 million shares for gamestop and around 25.7 million shares for amc, most of which are out of the money, so they'll expire worthless. This means that, firstly, all of the money they spent to buy these puts is gone until now. Any loss incurred on these positions was only on paper as they'd never closed any of their short positions and due to lacks rules on options reporting, they didn't have to report them either.

Once those puts expire, the losses become real and they'll have no choice but to include it on their quarterly filings and 13f filings, which are publicly available. So we'll be able to see it, though. It's noteworthy that all of this reporting is voluntary and the penalty for falsifying information on reports is fairly minuscule, but ultimately they will have to report actual losses in their financial statements and in their 13 f filings. And secondly, if the puts they've been using to hide their positions expire, then either their positions become exposed.

Then we can see them or they'll, have to dish out another truckload of money to repeat this process which could likely bleed them dry, especially at a time when many many hedges out there are only just meeting margin requirements by the skin of their teeth and these Margin and collateral requirements are increasing on an almost daily basis, and thirdly, it's been suggested previously that they were using these puts as collateral to meet those margin requirements, so losing them could mean margin calls become harder to survive, and i also want to talk about the Quarter today, box office for quarter four of 2021 and the full year for 2021 as well, and how that compares to previous years like 2019, 2018, 2017 and that pre-pandemic era, obviously back in 2019 1817. The total gross yearly box office figures were around 2.5 2.6 billion dollars now for this year in 2021, that's only at 1.8 billion dollars for the domestic box office, so we're not quite back at pre-pandemic levels just yet, but i think it's very important to note that Back in 2019, 18 and 17, there were between 339 and 381 movies released and in 2021 only 150 films. So that means that, on an average basis, this year, they've generated 12.5 million dollars per average, showing which blows out of the water every single year ever existed. On record, until around 2001 and previously, obviously back in 2001 and before they were only producing between 73 and 173 films, which is obviously much much lower than what they were producing back in 2019, 18 and 17., i personally think that's absolutely brilliant brilliant news and hopefully Continues next year into 2022, as well guys be sure to.

Let me know down in the comments below what you think about the fed preparing for the amc squeeze and for the next stock market crash. And if you want to stay up to date with my latest stock and crypto picks or if you just want some help with amc and gamestop, be sure to check out the patreon and the private discord linked in the description below 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.