Welcome back to the channel everyone today, i want to show you this video of an ex-hedge fund, ceo, proving how short positions are hidden in put options just like mac attack or the kilter trader's due diligence exposed so stay tuned and let's make some money. But before i dive into the video, if you haven't already be sure to sign up to moomoo using the special thomas james, investing promotion, which actually expires and runs out in only a few days time, not only do you get a free stock worth up to 350 And not only do you get a second free stock with a guaranteed value of fifty dollars, but you also get a third free stock with another guaranteed value of thirty dollars. On top of that, therefore, that's at least eighty dollars in guaranteed free stocks. Just for signing up to moomoo and depositing at least a hundred dollars, you could sell those stocks and get two entirely free shares of amc linked in the description below, but remember this promotion does expire in a few days on the 30th of september, and now i Want to dive straight in with the key information.

So let's hear what the ex-hedge fund ceo mark hodes has to say about hiding shorts input options. Now you might be wondering who this guy actually is i'll get onto that in a little bit. But let's listen to the video first um! You were asked in the deposition. If you wanted to help overstock - and you said absolutely not so, but your deposition in that lawsuit is very damning of goldman, including its use of options, conversions to create fake shares to trade or lend out, and i read that goldman tried to seal your court transcript.

How did you find out about the options conversions and how did they work? What goes on what you say with your fine, basically i'll simply say, crime pays. So whoever is out there watching this. Whoever listens to what i have to say. Listen to this carefully, your brokerage firm does not give a rat's ass about you.

Robin hood could care less about you. None of these brokerage firms could care about you they've all paid significant fines, citadel's paid huge fines, robin hood's paid fines. All these guys have paid fines and it's basically like paying a speeding ticket. They just don't care, they don't care, they don't make changes, they don't give a rat's ass about you.

So when we did this deposition, if you will, i couldn't stand goldman, i couldn't stand. Overstock my lawyer shapiro, who was with me at the deposition, told the goldman lawyer: do not ask mark about goldman and what goldman did with the firm stay away from that, because that is red meat in front of a jaguar and sure enough. The lawyer did - and i just let into him - and i went over exactly how goldman does business and - and you know these conversions if you will are or and or should be illegal, but there's a little loophole in in this that i'll get into later. And basically, if goldman and or market makers, market makers in in stocks and in options can be short, the stock without a borrow, they can short you stock without them, borrowing it and they sell calls.

They sell deep in the money, calls for a premium and they buy deep in the money puts and they sh. They then sell you, the fake or created shares where there's no borrow and you have the shares and when the borrow gets pulled or bought in. They simply reverse that trade. Let's say for june and roll it to july, and then when the issue happens in july, they roll july into august, so they keep rolling this trade as long as the customer wants it without ever having to deliver the shares.

Now, there's a loophole that says: market makers do not need to borrow shares to keep in quotes. Air quote a fair and orderly market, and this is where the so-called naked shorting or shorting without a borrow, comes from citadel. If they're a market maker in this day and age can be short, all the pick, the name you want and they don't need to borrow, and they don't need to pay the borrow fees, because, if asked they're, maintaining a fair and orderly market, so market makers can Legally - and this is the irony of this whole thing can legally be naked short of stock without a borrow, because that is the law, and that is the rule. Now, if people want to change the rule, that's a whole different thing, but everyone who's complaining about naked shorting in this day and age, whether it's gme or amc, or things like that.

You need to look no further than the market makers see back back before the sec changed the rule in 2008, 2009. Whenever they were doing it in in prior to then you could do these option conversions and they weren't viewed per se as as illegal or as illegal as as a customer would look at it. So this is very technical stuff. This is done by the higher ups and computers and people who run these numbers and and the citadels of the world who make markets in options and who do this kind of stuff they're, not breaking the law per se.

They're not because they'll say they're, maintaining a fair and orderly market, but one they're making an absolute fortune doing this two. They don't have to pay the huge negative rebate rebate fee that individuals or institutions pay for, and these guys are the true enemy along with the kramer types who who do what he did in the video you showed. So there's a lot. There's a huge misunderstanding out.

There about what really goes on, i mean what really and truly goes on and how it goes on, and it's dirty as hell and and and it needs to stop. But i just you know, i just throw my arms in the air i'm a 61 year old guy and and i fought a lot of fights and i'm a little worn out with some of this bull. But you know it's it's it's. What goes on it's sick.

It's not right, it's not fair, it's uh, the deck stacked against the joe six-packs of the world and and it's further stacked, where the citadels who to me are the villains in this. In this show, they would love nothing more than the excuse. Me reddit crowd to keep fussing about this, because it's it's really not where the bodies and the dead bodies are buried and there it is from the horse's mouth we've just heard. An ex-hedge fund ceo talk about how market makers continue to roll these deep in the money, puts or deep in the money options and effectively continue to make it sure and they don't ever get any pushback or any fines, because it's technically not illegal.

Now i want to talk about a few things here. Firstly, who is this guy, and how can we trust what he's saying and number two? How exactly does this impact on amc and is this what's going on in mc as well, but before we get into that? If you want to watch the rest of this interview or the whole of this interview as it's a 59 minute, video i'll leave it linked down in the description below, i think it's a super super interesting interview. As this ex-hedge fund, ceo exposes all the dirty. That goes on with the market makers and the big hedge funds and institutions, but so first, who actually is this guy well mark code, is a former general partner of rocker partners which rebranded to copper river from 1985 to 2009..

He also began his career at the northern trust company in 1982, after graduating babson college, with a bachelor's in finance. Okay, so we know he was a general partner at rocker partners or copper river. Are they big hedge funds or are they just nobody? Hedge funds working out of a shed with a few thousand dollars well in this article, where goldman sachs was accused of naked shorting, like he explained in that interview, the former head of a 1.5 billion hedge fund, copper river mark codes added to the testimony claiming that Goldman sachs bore part of the responsibility for his company's failure. So, interestingly, copper river was actually one of the funds that was shorting over stock and overstock, actually sued copper river in 2005 for stock manipulation.

At the time, mark codes had no idea what was really going on because, as far as he was aware, he was legitly short in copper river and therefore didn't see any manipulation. According to code's testimony, copper river paid goldman to act as its primary brokerage firm, conducting trades for the company and locating cosby short shares codes. Who is now a chicken farmer in northern carolina came to believe that goldman was buying the stock that he was shorting ahead of his firm driving up their prices and making copper rivers short covering purchase. Even more costly and codes came to find out that goldman sachs was never really providing him with legit shares.

To short, they were, in fact just creating these shares and giving them to him for him to show and that's how he came to find out about the deep in the money calls and the deep in the money puts and how market makers can create shares. That can be naked shorted effectively and how these naked shorts and failure delivers can be avoided by that market maker, like goldman just continuing to roll them within deep in the money purse. So since then, mark code has become a short seller who now goes after the bad guys in his 30 plus year, career mark claims to have put a lot of people in jail and exposed 50 to 70 frauds, mostly in biotech and subprime mortgages, he's been called. The scrooge of all street and warren buffett's mosquito, harvard business school has written two case.

Studies about mark's methods and mark is especially tenacious when target companies push back or trash his reputation, and he says there's no greater motivator than disrespect. So therefore, it seems like over time marcus transitioned from being a legit short seller to now an investigator who exposes frauds and naked short sellers. But how exactly does this impact amc and what can we do about it? Well, this is a screenshot from mac attack's, due diligence, which i'll also link down in the description below mac has reviewed every single deep in the money put every single day since january and is determined that there's been a total conversion of 5.9 billion, failed delivers and What this actually means is when a naked short or a failure to deliver reaches close to that 14-day deadline. The market maker effectively rolls it inside a deep in the money put to a later date and that 14-day deadline is to do with that regulation.

Sho list, when a failure to deliver reaches that 14-day deadline, it has to be forcibly covered and a true share, purchased to cover that naked sure or failure to deliver. I've explained previously how this rolling process actually works, but effectively. Mac attack has reviewed every single deep in the money put every single day and has realized some interesting facts. Back in january, there were many days when there wasn't a single fail to deliver that was rolled, although obviously close to january 27th, there was nearly 89 million further delivers rolled on a single day.

Many other days had much less, maybe say one to two million and many days had not a single fail to deliver old and, as we got closer to may and june, we saw this number ramp up massively with an all-time high of 401 million failing to deliver Positions rolled on a single day, so that's effectively, 401 million shares naked shorted that were rolled on a singular day and now, as we're getting closer to september. On october, we've reached an all-time high of 886 million failed to deliver shares rolled in a single day. While this doesn't necessarily show that there's 5.9 billion synthetic shares or 5.9 billion naked shorts, what it does show is the fact there was 886 million failed to deliver shares rolled in a single day and the day after 884 million further delivers rolled in a single day And the day previously, 613 million felt the delivers rolled in a single day. So what this does show is four times the float rolled in fell to delivers in three days.

Therefore, it does certainly expose that there are indeed naked shorts and synthetic shares floating around right. Now and in very very large quantities, but i guess the main problem is the fact that this isn't necessarily illegal under the sec rules and therefore nothing can really be done about it. But what it also does expose is there is something that causes these hedge funds and these market makers to lose track of their failure to deliver rollings and cause them to stop rolling them. Obviously, we saw 89 million further delivers rolled in january, but then the following few days that number declined massively and amc squeezed or maybe amc squeezed first causing them to lose control.

We haven't quite figured that one out yet same again. In june they rolled massive amounts of failed, delivers and then lost control or lost control and then stopped rolling their filter delivers, and now in september we have double the amount of failed delivers, as we had in late may and june, and therefore i expect at some Point they're going to lose control again and amc is going to run up massively. I think what we need to work on now is figure out what causes them to lose control or figure out what causes them to stop rolling their filter delivers and therefore lose control. Guys be sure to, let me know down in the comments below what you think about the ex hedge fund, ceo, exposing how market makers hide their short positions in deep in the money puts and while you're down there be sure to sign up to moomoo.

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