Welcome back to the channel, everyone today is the start of a new t-plus 35 cycle that lasts for the majority of next week. So today, in this video, i want to explain what t-plus 35 actually is, how it's going to impact the amc stock if they can circumvent it and what we should expect so stay tuned and let's make some money, but before i dive into the video i just Want to give a massive shout out to the 3 400 of you that have currently ding that notification bell, because you guys are always the first to watch a new video as soon as it's released so guys be sure to drop a like down below subscribe to. The channel and ding that notification bell, if you haven't already so that you don't miss another video, just like this one and now i want to dive straight in with the key information so t plus 35 explained hedges have to make good on their failed delivers within 35 trading days, they always wait to the last minute in hopes that the share price drops before they cover now it just makes sense to cover all at once right. So let's take a look here.

The green arrow is april 15th. A noticeable spike in failed delivers. They covered all of the filter, delivers in the red box area at the same time, 35 trading days after april 15th, which happens to be june, the 3rd, the blue arrow, the closing share price on june. The third was 62.55 35 trading days from the purple.

Arrow spike is august, the 6th tomorrow or today it should be interesting. Now this post isn't quite accurate, because all of these aren't individually recorded fair delivers. Well, they kind of are but kind of aren't. Basically, you don't add all of these felted livers together and create a cumulative amount of say, 35 or 40 million for delivers they're all individually separate days.

So you had a spike here on april 17th that failed to deliver, but by april 18th it felt the delivers, recovered or transferred, obviously just transferred. Now i guess that is potentially similar to what happened in june. You could have had all of the filter delivers on june 18th transferred and then just more felt the delivers on june 21st, or maybe they didn't transfer any of them and only incurred a small amount. Extra we'll go through it in more detail a little bit later.

In the video, but first i want to do a bit of a better job on explaining that t plus 35 cycle for newer apes. So obviously, a failure deliver is created when you buy a stock or exercise a call option, but the market maker does not deliver these shares to you. If you have an in the money, call option and exercise it the market maker who sold you. This call is required to deliver 100 shares to you.

However, sometimes market makers don't deliver these shares and instead give you ious, which are called phantom shares, since they aren't actually real shares, but synthetic ones. The ious are not part of the flow and must be replaced by real shares to you, the shareholder. It looks like you've got 100 shares, but in actuality you own phantom shares or synthetic shares, and the market maker still needs to deliver. A hundred shares to you to get rid of those hundred ious and if the share isn't delivered within two trading days, a fail to deliver is created.

A fail to deliver can also be created. On the flip side, if somebody wants to short some shares, but they can't locate the shares to shore, they take out the short position and there's effectively a fail to deliver created from the market maker because they failed to deliver those shares to be shorted. T plus 35 and its importance when i fail to deliver is created. The market maker has 35 calendar days to deliver this share regulation.

Sho says that the filter delivers have to be covered before regular trading hours on the 35th day after they fail to deliver cycle. So if they don't deliver these shares within 35 days, they're in trouble, the photo delivers are often covered on the last day, 34 days after the fail to deliver was initially created. But i was also wondering how this t-plus 35 cycle interacts with the threshold securities list, because, obviously, if a stock is on that threshold securities list, it has 13 days to cover the shares and be removed from the list or they're forcibly covered. But i managed to find this post on how there are exceptions to the t 13 deadline if the stock has been grandfathered in if a participant of a registered clearing agency has failed to deliver position in a threshold security for 13 consecutive settlement days, the participants shall Immediately thereafter close out the fell to deliver position by purchasing securities of like kind and quantity, provided, however, that a participant of a registered clearing agency that has a failed to deliver position at a register.

Clearing agency, in a threshold security on the effective date of this amendment and which, prior to the effective date on this amendment, had been previously grandfathered from the closeout requirement. In this paragraph shall close out that failed to deliver position within 35 consecutive settlement days of the effective date of this amendment by purchasing securities of like kind and quantity. So what does it mean to be grandfathered in? It means that if the fail to deliver happened before the security was placed on the threshold securities list - and it was grandfather due to a reason in section 242.2 - then it can still deliver the shares on the t 35 schedule. The below are summaries of the exemptions that could have allowed them to have a t plus 35 settlement date prior to the threshold start date and remain on that t 35 settlement date, instead of the t plus 13 or 13 consecutive day settlement day.

If the person who has the fail to deliver is in an unconditional contract binding both parties to purchase but has not received the security, it can now extend for 35 days or the person owns a security convertible and has tended such security for conversion or exchange or The person has exercised an option but has not yet received the shares or a person holds a securities futures contract. Basically, an arrangement with a person that they will buy x amount of the stock on some day in the future, and the contract cannot be broken or etf malarkey. The terminology is confusing, but there's a way to extend ftds to t 35 using etf unwinding. The broker dealer is in winding index arbitrage positions involving a long basket of stocks and one or more short index futures.

So now we can see that actually, a lot of these market makers can escape the t, plus 13 cycle or the 13 calendar day cycle. If there was a previous agreement beforehand, which there most likely was as they went through all of this back in may and january before that, however, the reason why they can't escape from the t 35 cycle is as follows: if a participant of a registered clearing agency Entitled to rely on the 35 consecutive settlement day closed. A requirement contained in these paragraphs of this section has a fail to deliver position at a registered clearing agency in the threshold security for 35 consecutive settlement days, the participant and any broker or dealer for which it clears transactions, including any market maker. That would otherwise be entitled to rely on the exception, provided in this.

Paragraph of this section may not accept a short sale order in the threshold security from another person or affect a short sale in the threshold security for its own account, without borrowing the security or entering into a bona fide arrangement. To borrow the security until the participant closes out the further deliver position by purchasing securities of like kind and quantity. This is saying that if a participant was grandfathered into the t plus 35, then on t 35, they will not be allowed to accept any short sale. Orders until they close out of their account again, the bottom sentence is important.

So if your broker, robin hood, has failed to deliver with someone like citadel, then neither can mark sales at short after the 13 or 35 days settlement cycles. What makes this cycle so important is the fact they absolutely need to deliver the shares within 35 trading days. They have no other option. If there's a lot of failed delivers, then a lot of shares will need to be bought which drives the price up.

A fellow user asked me to explain what happens when the t-35 cycle ends. The thing is: filtered delivers are created every single day, so technically the t-35 cycle happens every single day. However, there are days when there are just an absurd amount of further delivers for amc. There is over one two or even three million further delivers, meaning when they're covered.

It often results in a big upward price movement and if we have a look at the amc chart, obviously we saw this kind of number of filtered livers in april, but in june we saw actually a much higher and more sustained amount of failed delivers. So what should we expect? Well, we can expect these filter delivers to be covered, as we're now approaching that t-plus 35 settlement day that's most likely gon na result in upward momentum. Maybe some small amount of further delivers were covered yesterday and that's why we had a good day yesterday. Now, i'm not expecting some kind of giant 500 gain in one trading day, but we can see hopefully another upward movement through friday and then next week, monday, tuesday, wednesday, thursday and next friday as well.

Is this going to cause the short squeeze or the gamma squeeze? Realistically, i don't know, i can't see the future, i don't want to put a specific date or a specific time or a specific price target for the amc squeeze and therefore i don't know if it's going to cause it, but this is definitely a big catalyst throughout Gamestop and amc's history on every single close of the 35 day trading cycle, we have usually seen a good green day. I expect those good green days to continue - and i expect today, friday and a lot of next week to contain more green days and amc moving back upwards. On top of this, the emc price really seems to have bottomed out around 28 to 30 dollars and therefore it's most likely that it will start moving back upwards. However, i also can't say for absolute certainty that it's going to cause the squeeze that we're all wanting.

I don't really want to give anyone false hope, but, as always, i will be sure to update you as the week progresses next week with the amc price and, what's going on guys, be sure to. Let me know down in the comments below what you think is going to happen as a result of the t-plus 35 cycle. Are we going to have a green day today and a green week next week and if you haven't already i'd, really consider checking out the patreon and the private discord and becoming part of the team? That way, you get urgent updates and news, and due diligence about amc and access to my stock portfolio 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.