Welcome back to the channel everyone today, i want to talk about the crazy amc options chain for the 21st of january 2022. Right now, there's more options than there was back in june of 2021 right before the big run-up, so stay tuned and let's make some money, and now i want to dive straight in with the key information. So this post here says the 21st of january 2022 is showing the largest number of open options, contracts for amc that i've ever seen open contracts for that day, add up to 958 638 contracts or 95.9 million shares, assuming that adam aaron's apes hold 90 of the Float is accurate. It means that only 10 of the float 51.3 million shares can be used in options, but yet we've got open contracts for 95.9 million.

Having a look at the open interest, we've got 475 000 out of the money calls with a hundred and ten thousand in the money calls we've got 309 000 out of the money puts with 63 000 in the money puts for a more up-to-date figure. We've got 494 000 out. The money calls with 108. Nearly 109 000 in the money calls we've got 311 000 out.

The money puts with only 67 000 in the money puts now. You may ask well tom: why is this a big deal? I went back to a post seven months ago to find out what the call options were back in june of 2021, and it says right here at the 145 calls. The open interest is 41 929 contracts, and from this post seven months ago there was around 138 000 open contracts at the 40 calls, therefore, all in all that's about 180 000 contracts for june of 2021, just before or just at the time of the big runner. So if we head on over to weeble and look at the options chain for the 21st of january 2022 and look at the 40 calls, we can see an open interest of 59 000 contracts.

And if i scroll down to the 145 calls, we can see an open interest of 185 500 contracts. Therefore, that's more calls than we saw back in june of 2021 at the 40 strikes. We only had 138 000 and at the 145s we only had 42 000.. Now the interesting thing you'll also know is that this time around the options are basically flipped.

Back in june, we had 42 000 contracts at the 145s, whereas now we have 185 000 contracts at the 145s back in june, we had 138 000 contracts at the 40s, whereas now we only have 59 000 contracts at the 40s, so this basically means that, as The price of amc accelerates, the hedges will have to hedge for these 145s at a more rapid rate and there's also way more 145 options that they actually need to hedge for as well. This post from june actually breaks it down a little bit better. It says this means if we start moving at speeds towards a hundred dollars, the gamma or rate of change will increase and could mean that we could potentially break into the triple digits, and on top of this, as the hedges start hedging for all of these calls, They also begin to unhedge on their puts, as obviously there's going to be more and more put options becoming out of the money and for those that are unaware. They, hedge, a pert by selling, shares if you've got no shares to sell you, hedge, a put by short selling shares and therefore, if you want to unhedge those puts they have to buy the shares back guys.

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Valued up to three thousand five hundred dollars each, so that's potentially up to seventeen thousand five hundred dollars in free stocks, just for signing up with moomoo, using the link in description below and making your first deposit. Now you might say well tom, the hedges are just going to find a way out of it like they always do right. Well, this time, i'm not actually sure. If that's the case, this post also points out a few things that the hedges can try and do to get out of all of these contracts falling due.

But i want to also combat that with some thoughts, so the post says one potential excuse is massive. Naked short selling on a scale unseen before or the rolling of those failed delivers. This is a dangerous tactic, as it puts synthetic shares into the hands of apes and, more importantly, it increases the rate of gamma and the implied volatility of the stock. Now i also wanted to show you this chart, which is the iwm fails to deliver.

We can see here a spike in fail to deliver back in may. Just before the june run up. We then saw a giant spike in the fels deliver in september, which could have caused a september october run up, but it was obviously cancelled in some other way and now, in december of 2021. There's another spike in iwm fails to deliver over 2 million over 3 million, and nearly 4 million fails to deliver on a daily basis, therefore, potentially pertaining to a january run-up, and therefore this is the exact same scenario as we saw back in may.

They can't really naked short any more shares because they've already rolled their fell to delivers for this month and therefore they need to wait until they can roll them again. But the setup now in december and january is different to the setup in september and october. Yes, back in september, we had the failed delivers, but the options chain for october was not the same as we saw back in june, but right now, in december and january we have the felted delivers on the same rate that we saw back in may, but we Also have the same options chain, as we saw back in june of 2021, and actually this time, it's even bigger and therefore this time round, i don't think the addition of naked short selling or rolling of fertile delivers is actually on the cards because they've already rolled Them back in december tactic number two is wash sales or ladder attacks, and it says again this is expensive, especially if there is buying pressure, as it means potentially losing shares that you do have and making a loss. Now again, this is something i don't think is possible this time around, because the hedges have already maxed out their margin and can't extend their short positions anymore and don't have the cash for these ladder attacks.

You may remember from my video yesterday i talked about the falling margin: debt growth, that's because all of these institutions have already maxed out their margin debt and they can't grow it any further, because it's maxed out and therefore the hedges and institutions don't have any cash Remaining to perform these wash sales and ladder attacks in great levels. Now, on top of this, we also have spoofing. This doesn't cost anything, but to do it effectively when the volume is potentially going to go crazy, it means their spoofed. Orders will need to be gigantic and it's far more obvious as spoofing, and it leaves people open to proper jail time.

On top of this spoofing is really just an intimidation tactic that i don't really think is gon na work. This time we already know that amc ran back in january and we already know that amc ran back in june and we already know that amc can and will run again and therefore, when the price is running up on crazy volume, i don't really think anyone's going To be intimidated out of selling their positions, if anything people are going to be adding more when something happens, the first time it's a black swan event, that's never going to reoccur all of a sudden when it does reoccur. For the second time, people aren't really expecting it, but when it starts to reoccur for the third time, it then becomes very predictable. Unexpected and people can plan in advance.

Now, on top of this, gamestop is also setting up on a very, very similar basis. Back in january 22nd, gamestop had over 197 000 contracts on that day. Right now, gamestop has 108 000 out the money calls and 15 000 in the money. Calls gamestop also has a whopping, 304 000 out of the money puts, and only 13 000 in the money puts, and this goes to show the volume on gamestops options.

Contracts is even higher than it was back in january as well, and therefore both amc and gamestop are setting up for a very, very good january 2022 and obviously, if one stock squeezes, then obviously the other stock will squeeze as well. If gamestop starts to squeeze first, it will drag amc along with it and ultimately, i think the fact they're still panicking over amc a stock. That's currently trading in the 20 region is proof that they are all majorly screwed by retail investors holding so much of the flow. Yes, amc has fallen from the 70 region to the 20 region, but the hedges are still heavily underwater as most of those short positions originated from the 2 to 10 region from ehor's latest tweets.

We know that even from the 7th of december 2021, shorts were still down 2.87 billion dollars on amc for 2021, and this is why those shorts are still panicking, and this is why the shorts still haven't closed yet because just on illegal short interest, they're still down 2.87 billion dollars, not including all of the illegal synthetic shares, they've, obviously shorted as well. It's much more likely that shorts are down 2 to 10 times this amount based on the number of synthetic shorts, and that's why they're still panicking and that's why they obviously still haven't covered the only way these hedges can somehow get away with these naked shorts is, If a retail sells their shares and amc falls to two dollars a share or goes bankrupt, neither of which are obviously going to happen so guys be sure to. Let me know down in the comments below what you think about the january 2022 options chain and if you think, amc is going to experience its next run in january 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.