Welcome back to the channel everyone, as i spoke about in my video earlier today, i finally found the most important piece of data for the amc squeeze that i've ever seen so today i want to talk about amc's, true squeeze potential, so stay tuned and let's make Some money, and now i'm gon na dive straight in with the key information. So if you didn't already know this is the options chain in my past videos, i've spoken about why options are so important for the amg squeeze, and today i want to build on that. What i've got here is a screenshot of the june 2021 options chain. This screenshot was taken on june, the 3rd 2021 right in the middle of the squeeze, just after the run up to 72 dollars when the options chain was packed out.

At this point, the options chain was very, very full. The 4th of june 2021 options hadn't yet expired, but everyone had been buying those options on the 2nd of june and also previously back at the end of may so today i mostly want to talk about the gamma squeeze and why buying and exercising options is so So important, but at the same time i also wanted to give a bit of a warning and talk about the danger of call options and how call options should be played properly. But first let's go through this june options chain and digest what information we can see here, we'll also compare it to today's options chain and compare and contrast and see how we stand compared to june of 2021. So for the options chain ending the 4th of june 2021, we had 359 000 calls in the money and 307 000 puts out of the money.

That's obviously a very, very good scenario to be in with tons of calls in the money and tons of puts out. Now not only that, but we also had a very stacked lineup for the 18th of june, as well, with 658 000 calls in the money and 416 000 calls out of the money now obviously bear in mind that this screenshot was taken after the run up to 72 dollars most of these call options would have been the 10 or 20 calls so obviously most if not all of them are going to be in the money. If this screenshot was taken on june, the 1st or may the 31st just before the run-up, you'd see a lot more of these calls out of the money and a lot more of these puts in the money. The reason why we have so many calls in the money is because this screenshot is taken after the run-up to 72 dollars, so i mostly want to focus on the actual volume of options and not necessarily the placing of in the money and out of the money.

Obviously, for the 4th of june options we had 359 360, nearly 370 000 calls and 300 000 puts again for the 18th. We had around 660 000 calls and hundred thousand puts so in total. That's around nine hundred thousand calls nearly a million and seven hundred thousand puts now. The reason why i'm also including the 18th of june calls here as well, not just the fourth of june, is because obviously there's not too much of a time difference here.

It's not like we're looking at the 4th of june 2021 and the 18th of june 2022 a full year later guys, if you're getting a little bit worried about fidelity due to all the recent glitches and the fact they actually support short sellers moomoo are currently offering A free share of amc on top of their usual five free shares, valued up to three thousand five hundred dollars each to get those five free shares and your free share of amc. All you have to do is sign up to moomoo, using the link in the description below and make your first deposit. If you sign up and make your first deposit, you get those first two free shares. If you can deposit a hundred dollars, you also get a free share of amc and guys.

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That way, you guys don't have to worry about your trades, going through sketchy, dark pools or being given to citadel, and on top of that, moomoo also has excellent technical indicators and advanced charting tools. They also publish daily short selling volume, on top of a number of other important pieces of data, so guys be sure to sign up to moomoo, using the link in the description down below to get those five free shares, valued up to a total of 17 500 And your free share of amc, so let's compare it to the 21st of january 2022, the options chain as it stands right now for the 21st of january 2022. We have 61 000 calls in the money and 679 000. Nearly 680 000 calls out of the money.

We've got 154 000 puts in the money, and 249 000 puts out of the money, so in total, we've got around 740 000 call options and around 400 000 options being over 1.1 million options total. Now. This is good compared to the 4th of june options, because back in the 4th of june, there was only around 660 000 options total, whereas right now, we've got 1.1 million options again. Focusing on the calls specifically back in june, we only had around 370 000 calls, whereas now we have a whopping 740 000 calls.

Now again, i know there's a massive contrast between june, where pretty much all of the calls were in the money and right now, where pretty much all of the calls are out of the money, but obviously bear in mind that this screenshot is taken after the run-up. Whereas right now this screenshot, all this data is shown when amc is at its all-time lowest. But what we don't have compared to june is the following options: chain: two weeks later, where we had around 660 000 calls, and around 400 000 puts obviously adding the totals together, gives you around one million and thirty thousand call options, and around seven hundred and twenty Seven hundred and thirty thousand per options, whereas right now we only have seven hundred and forty thousand call options and around four hundred puts we're around 300 000 call options short, but what we do have is way less puts, also, coincidentally, by around 300 000 less puts And therefore, i think actually we're in a very similar position to what we saw in june. Yes, we've got three hundred thousand less calls, but we also have three hundred thousand less puts and this time instead of the calls being spread over three weeks.

The calls are right now this week now, while i don't want to focus too much on the contrast between the calls being in the money back in june and the calls being out of the money right now, because obviously this screenshot is taken after the run-up, whereas This data is presented before the run-up, but what i do want to do is talk about how far out of the money some of the calls right now actually are, and this all goes hand-in-hand with trey's warning. He says the importance and danger of calls for amc. A threat first and foremost calls or just specifically gamma squeezing, which is the process of hedging, calls that are out of the money and soon becoming in the money, play a big role on how amc moves. Every big move has been in part due to gamma, squeezing it's been very important.

Trey says as an example, the price of bmc is currently sitting around 19 a share. If amc moved up to 25 a share that would run a lot of the out of the money calls to in the money causing a gamma ramp and bullish price action. Now, that's obviously a compounding and ball rolling effect. The more options that become in the money and very profitable means that more options are going to be sold or exercised, meaning that more shares are going to be bought again, causing more bullish, price action, more price increases and more options becoming in the money and profitable.

But trey says here: the key, though, is good options. Chains. A bad options chain is seeing 200 000 plus call options at 845 strikes for this friday. If we suddenly got an absurd volume pump and those run in the money, it would be awesome and obviously that would cause tons of gamma hedging and gamma ramping and would literally cause the gamma squeeze, but obviously the algos and the shorts haven't.

Let that happen and the buying pressure hasn't been big enough on its own and trey says this is how retail wastes money into the abyss. Obviously buying. These 145 strikes is a waste of money, because the market makers don't have to hedge for these strikes because they're so far out of the money and obviously we can't exercise them and get the shares. Because again, they're still out of the money.

Trey says a solid options chain is seeing a heavy open interest or oi slightly out of the money. Now i personally slightly disagree with trey here, as i think, an even better options chain is to see tons of open interest on at the money options or already in the money options. Trey says this is important to slowly gamma ramp and build momentum into the next. Following chain, obviously, there's going to be no momentum with the 145 strikes when amc is trading at 19.

But obviously, if lots of options are bought at the money or slightly out of the money, then the amc price will start to increase and the gamma ramping will also start to increase and momentum will be steadily built. Trey says: options are bad if you use them based on no grounded analysis, but options are good if you bet with thoughtful and educated guesses. Now, let's talk about actually triggering a gamma squeeze buying contracts at the money or in the money near immediately force. His market makers into the market to purchase shares and delta hedge.

Obviously, if we buy one option near the money at the money or in the money, it'll only cost a few hundred dollars. But what it will do is force the market makers to go into the market and buy 100 shares of amc, which obviously costs more than a few hundred dollars. And obviously, if we can do this tons and tons and tons of times over, it means the market makers are going to be forced to go into the market and by hundreds of thousands, if not millions and millions, potentially tens of millions or even hundreds of millions Of amc shares all at the same time, and on top of that exercising in the money call contracts sends market makers into the market to purchase shares, provided they don't already have them and provided they didn't already delta hedge for them. For example, if the market maker has sold that call option naked and never went into the market to purchase these shares, when you exercise those contracts, the market makers have to go into the market, purchase those shares and give them to you when the stock makes aggressive Moves to the upside and liquidity is low due to buy and hold investors.

Market makers will force margin, calls upon lenders causing aggressive purchasing of shares and or big blocks of them from the market now. This is why i think it's so important that retail investors now hold 80 or 90 percent of the flow. This is what we didn't have back in january and back in june. What we did have back in january and june that caused the run-up is the massive amount of options back in january.

Retail investors did not hold 80 percent of the amc float, but what we did have was those massive amount of options and that's what caused the january run up but january, we didn't have the proper short squeeze because we didn't hold all of the shares and now Again in june, or may specifically, we still didn't hold a full 80 of the float until after the june run up, but again what we did have is tons and tons of call options. That's what caused the june run up, but amc didn't squeeze, because again we didn't hold all of the shares, but right now we do hold all of the shares we hold 80 or 90 percent of the legal flow and probably own the float many times over due To all of the synthetics that have been sold and therefore the available shares in the market or the liquidity will be low, and therefore these market makers are going to be forced to buy amc shares when we buy at or in the money, calls or exercise. Those calls they're going to be forced into the market to buy those shares at any price available when that liquidity is low and they're forced to buy tons and tons of shares. That's going to push the price of amc up and it's gon na cause, tons more shares or tons more options to become in the money and again even more options becoming in the money means more options that can be exercised, meaning more shares that have to be Purchased - and it also says most retail investors don't have the cash to exercise in the money options.

No problem sell half the contracts to gather the funds necessary to exercise the other half or you can also do what i spoke about a few videos ago, which is to initiate an exercise and sell to cover transaction and that way. Even if you only have one options contract - and you don't have the cash to exercise it - you can still exercise it. The market maker exercises your contract but keeps some of those shares for themselves to pay off the effective, exercising cost. It says exercise your stock options to buy.

Shares of your company stock then sell just enough. The company shares at the same time to cover the stock option, cost taxes and brokerage commission and fees, and that way you can still exercise your call options. Contract and you get most of the shares, but not all of them, as the market maker effectively keeps and sells some to pay for that exercise, cost now, if you're a little confused on how gamma ramping actually works or how a gamma squeeze actually happens. The rest of this post goes into a bit more detail on gamma, ramping and gamma squeezes, obviously, as usual i'll leave the link to this post down in the description below, but i also wanted to quickly touch on this tweet from nm investments.

He says over 40 billion dollars says the amc is going to be above its all-time highs by the 21st of january 2022. 40 billion dollars is the cost of all of these cool options that are currently in and out of the money. You can see here that this is the open interest of all of the call options, and this is the total premium cost. This is obviously the strike prices at which they occur at as well.

One of the things to note, though, is the sheer massive amount of call options at the 145 strikes, but also the 110 and the hundred dollar strikes as well. Obviously, these call options aren't going to be hedged for by any market maker because they're so far out of the money. The promising thing, though, is that a lot of options are being hedged for lower down the chain at the 20 and 19 15 strikes. And finally, i wanted to quickly talk about another massive catalyst for the amc squeeze.

If you haven't already seen this, this is on the amc website page you can see at the top. It says amc, theaters, join amt, stubs and obviously has the rest of the intractable website as well. If you search gamestop rise of the players, this is a film that will be shown at amc theaters right now. I think the film has been removed.

As it obviously says, the film was developed in the 1900s and it doesn't say when the film is showing, but i do think this is a film that's going to be released sometime in 2022. This is absolutely brilliant. That amc is going to be showing a film about the rise of the retail investors. Maybe amc are saving this film until after the squeeze happens, and then they'll start to show the film so guys be sure to.

Let me know down in the comments below what you think about the current options chain and how it stacks up compared to the june chain, as always guys, if you enjoyed this video, be sure to check out some of my others. Alternatively, subscribe to the channel and do that notification bell, because that way you'll be alerted. When i upload a new video cheers:.