Welcome back to the channel everyone today i want to talk about how we're going to beat the shorts and how we will cause the amc squeeze so stay tuned and let's make some money, and now i want to dive straight in with the information. So today i want to cover a few very important topics who actually is responsible for shorting us: how are they doing it and how can we beat them and cause amc to squeeze so the answer to question number one is a bit more in depth than you May think obviously citadel are shorting us, but it's not just citadel. That's responsible for the shorting. Obviously citadel is not only a hedge fund that is shorting amc, but is also a market maker.

That's helping other funds to create synthetic shorts. They also facilitate the creation of fail to delivers and also operate. The dark pool platform which many hedge funds use to send their trades to obviously dark pools are not very transparent at all. There's a lot of different types of orders that get sent to those dark pools and there's a lot of nefarious activity that goes on inside them, but citadel, isn't just a one-man band completely organizing this entire operation, all on their own there's, also some other market makers That are involved as well, such as virtue virtue operate their own dark pool and effectively assist other hedge funds in creating synthetic shares, and also just that entire nefarious dark pool activity.

But obviously it's not just market makers like citadel and virtue, there's also prime brokers involved. As well like bank of america, jpmorgan and many others, but more importantly, you've got the specific short sellers that are actually shorting the stock. While citadel creates the synthetic shares and the filter delivers, they don't necessarily hold all of them. The majority of synthetic shares are held by those short hedge funds in this group.

You've got not only the well-known short hedge funds like subsequent hana, but you've also got the activist short sellers as well activist short sellers are primarily social media based short sellers like research firms such as iceberg, research, hindenburg research and many others, but also there's many other People affiliated with these anonymous activist short sellers as well like charles gasparino and many other people in the mainstream media, anonymous activist short sellers claim not to have a position and that they're a neutral party that spends 24 7 insulting retail investors. A short seller is obviously allowed to voice their opinion, but a line has been crossed for a very long time with these research firms putting out short reports that are a lot of the time full of incorrect information solely to shore and distort a company's stock and The real dark pool says this isn't solely about misinformation. This is about crushing retail investors and putting them back in their place. This has obviously been going on for a long time now, as we first saw people like rich greenfield from light shed partners spreading fud about amc.

Since back in may and june, darkpool says, hedge funds first take a short position, whether it's a legit short position or whether it's full of synthetic shares. They then pay research firms to write articles and therefore yes, these activist short sellers, are definitely involved in this play. In a major way, this article was released by institutional investor back in november of 2020 titled, the dark money secretly, bankrolling activist short sellers and the insiders trying to expose it. It says john fitchthorn had been in the hedge fund business for more than 20 years when a half hour phone call, with a stranger put him on high alert in december 2017, fitchthorn, a veteran short seller and the founder of hedge fund dialect capital management had joined The board of a troubled small cap company called health insurance innovations, but when he happened to mention the name to a prospective investor a year later, the man told him an alarming detail.

There's a multi-billion dollar fund out there going around with a short report trying to pay people to publish it on their behalf. Short sellers then soon begun pounding the stock. So he called the man back and says he finally convinced him to provide the alleged name behind the offer. According to fitchthorn, that name was a hong kong-based.

Hedge fund, fitch thorne, may never have heard of this fund, but it's become well known in short seller circles. For being, what's called the balance sheet behind some activists who trumpet their short research on social media, the article then goes on to talk about muddy waters, capital in detail, which is obviously a firm that we know all too well by now. So, interestingly, this hasn't just been going on over the last year or two during the meme stock craze. But actually it's been going on for many many years, but so how are these market makers, prime brokers, short selling firms and research firms or activist short sellers? Actually, shorting and crushing the price of amc darkpool starts by saying tyler wilson of options drop, said: amc trades with the market when it's going down and trades against the market when it's doing well, and that quote had me thinking for a while as to what that Means and i've broken it down below when shorting in a bull market like we saw in early 2021, the shorts had to work double time and utilize shorts more often than they really wanted to, and that's why in early 2021 for amc, we saw a very little Amount of shares available to shore on a daily basis because they were basically being entirely used up, and he said now that we've hit a bear market.

They only need to short on the days the market would pull meme stocks up with it. Then, on the days it's going down because they just let the broader market do the rest when the market is falling, amc always tends to fall with the market, because there's tons and tons of money flowing out of the market not into the market but obviously on Those bull days when there's money flowing into the market, the shorts just work double time to crush the price of amc even more, and he says the problem with yelling manipulation or synthetic shares is that it turns off critical thinking and won't think of the ways they Are doing this? Yes, synthetic shares definitely exist and it's definitely a way that they are crushing the price of amc. But it's not the only way, and he said there's many ways. These guys can short it, and typically it's through the derivatives in order to hit max payne.

Obviously, funds can short the legit way by borrowing shares. They can also short the stock by buying per options. They can also short by selling cover calls, and they can also short the stock by selling naked calls, not just by naked shorting the stock from an underlying short position, but actually by selling naked calls. Selling naked calls is where they sell call options to unsuspecting retail investors without even owning a stock.

That way a hedge fund never has to exert any buying pressure on amc because they don't ever buy the stock. They just sell us. The call option then use that money to short amc and push the price down that way week after week after week, they can hit that max pay. Our options expire worthless, they get extra money and amc's price keeps on falling and he said i've read countless short reports on the firm's shorting this stock.

Yes, a lot of those short reports are publicly available and they download the options chain. Data weekly to prevent gamma squeezes from happening again like in june, and that is likely why, back in january of this year, when we did have a stacked options chain, they still managed to push us down below max payne, because they'd been downloading the data months beforehand And they were ready for it and he says, do not underestimate your opponents because they have expert knowledge in market mechanics and human psychology. The best thing you can do is study them and learn how they operate. They entered many of their short positions around seven to nine dollars per share.

As per their reports. He says in many of their short reports. They were caught off guard by the june gamma squeeze or the june price run up and have been doing everything in their power to stop that from happening again. Guys, if you haven't already be sure to sign up to moomoo, using the link in the description below and make your first deposit to get up to five free shares, valued up to three thousand five hundred dollars each and a guaranteed free share, valued at twenty dollars.

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This is an extract from one of those short reports that says. Amc's latest rally was helped by heavy trading in equity options. Financial derivatives that give buyers the right to buy or sell shares at a fixed price in the future, depending on where the stock price currently is. As the share price.

Skyrocketed market makers who sold amc options were forced to buy the company shares to offset their exposure driving the stock higher in a phenomenon known as a gamma squeeze. But he does also say that, yes, cheap far out of the money options, is basically giving money to the market makers when you buy options that expire this friday today in a few hours and you buy, the 60 calls obviously they're gon na expire out of the Money and you're going to lose your money. We know that the price of amc ran up in june because the options chain was massively massively stacked, but on top of that, tesla's options chain has been stacked in the past as well. There's an article, that's titled, how a 2 360 jump in call options fired up, tesla's, share surge.

He says most shorts entered in the single digits and that's why they won't cover they're too stubborn and with the lack of recent options, activity they're, confident that they can get amc back down to the single digits. That's why they're still holding their open short positions from the 40s 50s 60s and even 70 dollar price ranges. It really shocked me a few months ago to see that shorts were still holding pretty much all of their open short positions that they opened in the 60. To 70 dollar region and hadn't closed them in the 20 region, and i couldn't figure out why.

But considering these hedge funds and activist short sellers are downloading the options chain, data on a weekly and monthly basis and they're studying it, they're, obviously confident that we aren't buying options and therefore they're confident that another gamma squeeze won't be caused and therefore they're, confident to Continue holding their shorts until amc reaches that single digit area. Now i also personally, don't really believe they can actually close their short positions at this single digit area because they're having to open new short positions to push the price of amc back down. But remember that an illegal short seller's goal is to never close their short positions when the short sellers were shorting blockbuster and sears, they didn't plan to short blockbuster down from seventy dollars and cover it ten dollars a share. No, they plan to make blockbuster bankrupt and never cover their shorts, even at one cent a share if they can hold those open shorts forever and push the price of amc down to one cent a share they effectively never have to declare that profit and never have To pay tax on that profit, so that's why these short sellers are still holding their short positions and haven't closed out.

Yes, they can't close out because they've created so many synthetic shares, but also they don't really plan on closing out. They just plan on turning amc to a penny stock. He says if their underlying shorts, their original shorts, are costing them more than the profits on their open positions. Then it's beneficial for them to continue holding until everything is profitable and he says with the market.

The way it is one gamma squeeze would end this for certain. Not only would their original seven to ten dollar shorts be underwater, but also their 40, 50, 60 and 70 shorts would also be underwater as well. At that point, they wouldn't be able to meet their margin requirements. They wouldn't have enough unrealised profit on their amc, short positions and they would end up being liquidated and forced to cover their shorts.

He says: diamond handing shorts was easy in a bull market and even easier in a bear market, but now a liquidity crisis looms. I think at the moment, there's so many potential catalysts that can trigger the amc squeeze such as the market crash. The s p 500 is seeing all-time lows and liquidity, so is the bond market, obviously with everything that's going on overseas, it's just adding to that. Current panic and lack of liquidity liquidity is so low at the moment that, with gamestop we're seeing minutes where there isn't a single share traded.

We're also seeing minutes where there's so few shares, traded and there's actually been orders cancelled that we're now starting to see negative volume, immortal gme posted a tweet saying negative 2.5 000 volume on fidelity's apt he's never seen this in over one year, fidelity actually replied saying: We've researched this and discovered there was a cancellation and a refund of 12 300 shares at that time. They said it's important to know that, since the trade and the refund is reported to the tape, all sources that provide this data would have this trade reflected in the time and sales. This is the first time i've ever seen: liquidity and volume so low that we're having minutes where not a single share of gamestop is being traded. Not only do we have this massive lack of liquidity and the liquidity crisis, but we also have the department of justice investigation, as i spoke about in my video earlier, while the sec aren't really being seen to do anything because they're so understaffed and underfunded the department Of justice absolutely means business.

If you think about the wolf of wall street jordan, belfort absolutely did not care when the sec were investigating him and even inside his own office, but when the fbi and the department of justice got involved, that's when jordan belfort went down. Darkpool says back in late may, amc saw 100 utilization and also saw 4.6 million shares returned when amc ran up and therefore roughly 85 million shorts are still in around the 10 to 12 region. After june's gamma squeeze or price run up, 40 million shorts are still open rather than going long, they're hedging by staying short, and he says, as per those short reports, gamma squeeze gains are usually short-lived, so they're, confident with their use of derivatives paired with a bear Market that they're comfortable holding on to their short positions, knowing that retail no longer plays options darkpool also recently tweeted saying there is a massively bullish call to put ratio, but there's too much of a spread to have any sort of gamma at the current price. I've mentioned many many times in my videos how these way out of the money calls the 35 the 40 the 60.

The 120 call options are absolutely pointless and you can't build gamma buying those massively far out of the money calls. The way to build gamma is by having a steady, ramp up of call options all the way up the options chain, not a very, very quick acceleration. All the way to the sixty dollar calls. One thing you can see is a massive dominance in call options compared to per options, but these calls are just so far out of the money he says in a gamma squeeze the price of a stock quickly increases based on traders, buying many call options to drive Up the prices of select stocks due to option sellers needing to hedge, their trades on the underlying stocks.

Thus a gamma squeeze can happen when there's widespread buying activity of short dated call options in a particular stock and directly from one of those short reports. It says the market is within a whisker of all-time highs, and yet our short book is doing well. The retail mania had slowed the most excessive sign of retail mania. Massive investment in short, dated out of the money calls, has slowed dramatically.

We are far less scared of a gamma squeeze in one of our names than we were back in february, and this is why call options are massively massively crucial if we, the retail investors, want to trigger the squeeze ourselves, not massively far out of the money. Calls that expire this friday, but strategically placed close to the money or in the money, call options where there's a massive massive amount of buying. If we're just playing the weekly call options, where there's very little volume, that will not cause a gamma squeeze but on those triple and quad witching days, where the weekly monthly and yearly options all expire at the same time, that's when you see massive amounts of volume. That's what we saw back in june of 2021, and that is what we saw in january of this year, but retail investors didn't pile on the pressure as much as we needed and the shorts were ready for.

It guys be sure to. Let me know down in the comments below how you think we will win against the shorts and how we will cause the squeeze and, as always guys, if you enjoyed this video, be sure to check out some of my others. Alternatively, subscribe the channel and ding that notification bell, because that way, you'll be alerted. When i upload a new video cheers.