Welcome back to the channel everyone today, i want to talk about how robin hood, td, ameritrade and a number of other brokers have already begun preparing for the squeeze aka preparing to take away your buy button, so stay tuned and let's make some money, and now i Want to dive straight in with the information, so you may have seen this pop-up if you're still using robinhood that says instant deposits are now restricted. This is, if you recently made a deposit you'll need to wait for it to settle before you can use the money. Typically, within four to five business days now, if you are still using robinhood, i have absolutely no idea what you're doing - and i beg you to please sign up for moomoo, using the link in the description below, because muma and futu do not accept payment for order Flow, but so previously robin hood offered instant deposits or good faith deposits when you deposit a thousand dollars robin hood would give you a thousand dollars of buying power to go and buy your stocks with. Obviously, these days, bank transactions are usually instantaneous, but some bank transactions do still take two to four business days.

To actually clear, therefore, on good faith, robin hood would still give you this money to trade with, even if it hadn't actually cleared now. This is obviously very useful in a retail investor squeeze circumstance because retail investors, like you and i can deposit more money into our trading platforms, such as robin hood, to buy more shares of amc and gamestop to help compound the squeeze you could say this is a Form of fomo, because people are going to want to deposit more money onto their trading platform to buy more shares so that they don't miss out on the actual squeeze, but obviously, on the flip side. This actually helps increase the power and the duration of the squeeze. Because it just means that more retail investors are buying even more shares, therefore causing the price to go even higher.

You then end up in this feedback loop of more investors buying more shares which pushes the price higher, which causes more retail investors to buy more shares, which pushes the price even higher. So by robin hood, limiting and removing those instant deposits. It kind of cuts off that feedback loop, because retail investors can't deposit more cash to buy more shares with now. Interestingly enough, it's not just robin hood limiting those instant deposits, but it's also td ameritrade in their think or swim app.

Now. Obviously, these are those brokers that turn off the buy button back in the january run up, and this may be a sign they're just about to turn off the buy button again if the squeeze gets too underway. Something else i found very very interesting is that td ameritrade have just updated their margin requirements with gamestop they've, now updated it to say that short selling of the stock is no longer allowed at this time. Previously, they just changed the margin requirements when shorting back in june.

If you wanted to short amc, you had to have 200 to 300 available margin and at some points they requested even up to 500 available margin. I think i actually mentioned this in one of my videos, the other day where one of the brokers had just set it to a 500 requirement. Therefore, if you wanted to short a thousand dollars worth of amc, you had to have five thousand dollars of available margin. Cash in your trading account, but now td ameritrade have entirely removed the short selling of gamestop, no matter how much available margin you have in your account.

Clearly, td ameritrade know that the losses for short sellers is potentially unlimited, especially during a squeeze scenario and therefore even having 500 available margin may not be enough to cover them now again. This third line here is also fairly worrying. That says, we may implement additional requirements on opening trades on options the day they expire, aka, basically saying that we may not allow you to open trades on options the day that they expire. Aka td ameritrade has just said that we may turn off the buy button.

If you try and buy some gamestop options now again, as i mentioned earlier in the video, if you are still using td ameritrade or robin hood, please don't please sign up for a different broker like moomoo. Now you may say tom. Why are these brokers like robin hood and td ameritrade already preparing for the squeeze? What information are they looking at? That's kind of giving it away and suggesting that aimc and gamestop are about to squeeze the real dark, paul tweeted saying: there's: lots of open interest on the options chain on the 25, the 30 and the 40 strikes. He said this is retail's chance to kick some ass derivative style.

Now, if we look at the amc options chain on the nasdaq website for the 18th of march 2022, we can see tons and tons of open interest at fairly different strike prices. Guys, if you didn't already know, mumu and future have just officially announced that food 2 does not accept payment for order flow, and therefore you don't have to worry about your trades, going through sketchy, dark pools or being given to citadel right now with mimo. You can currently get up to five free shares, valued up to 3 500 each and a guaranteed free share worth around twenty dollars. On top of that, which is a total of around seventeen thousand five hundred dollars worth of free stocks, all you have to do is sign up to mimi, using the link in the description below and make your first deposit.

Moom is also a brilliant commission free trading platform that has tons of technical indicators and advanced charting tools, moomoo publishes daily short selling data position, cost distribution and much much more moomoo is also incredibly easy to use and incredibly customizable and will help you to trade. Like a pro so guys be sure to sign up to moomoo, using the link in the description below for up to seventeen thousand five hundred dollars in three shares at the 16 strikes, we have an open interest of twenty thousand contracts at seventeen dollars. We've got eleven thousand contracts at the twenty dollars. We've got seventeen thousand contracts, twenty five dollars about eleven thousand contracts.

Out of thirty, we've got twenty two thousand contracts and then, if we scroll down further to the 50s, we've got 14 000 contracts. Now the options chain is looking a little bit thin between those 30 strikes and the 50 strikes, because there isn't a single strike that has over 10 000 contracts. I think what we need here is more interest between the 20 and the 25 strikes and more interest between the 30 and the 50 strikes as well, so we can steadily build that gamma ramp. Now, obviously, it's pointless if everybody jumps into these 50 strikes.

While amc is still trading at 19 or 20 dollars per share, because if that happens, we haven't built that steady, gamma ramp. We need to build that steady ramp up in the options chain to continually force those hedges to hedge for more and more and more call options by buying more and more amc shares, for example, right now, these hedges aren't hedging for the 50 strikes they're currently hedging. For the 20, the 21 and probably the 22 strikes as well, and therefore, if we build more of an open interest at these lower strikes like 20 to 25, it will force those hedges to hedge more and more, by buying more amc shares, which will obviously push The price up i do think this is a positive sign, seeing well over a hundred thousand open options contracts, but i do think we need significantly more to compound the effects of the squeeze, because back in january 2022, we had over 700 000 contracts. Now, obviously, due to those ladder attacks that happened throughout january, most of those options contracts did end up out of the money and not in the money, but there was still a substantial number of those options contracts if we can build up that current open interest in These near to the money options up to 200, 300, 400 or 500 000 contracts that would cause the hedges to have to hedge significantly for their current position.

Now i do think right now. The short hedge funds are currently very, very scared of both amc and gamestop because, as corey says, hey shorts, sorry for your loss, s3 partners posted saying on tuesday short sellers in tesla, gamestop and amc lost a combined 2.32 billion dollars now, obviously losing 2.3 billion dollars. On one single day is a significant amount of money to actually lose, and again it just digs into these short hedge funds available margin, as i've covered in some of my other videos, the amount of unrealised profits and the amount of available margin that melbourne capital currently Has has decreased significantly from june 2021 because tons of their other long positions like facebook, snow, a firm and many more have fallen significantly from their highs and therefore their unrecognized profits have just been evaporating. Not only have their unrecognized profits been evaporating, but also their outside.

Investment from citadel and 0.72 has also been evaporating, as well as ken griffin and steve cohen have been withdrawing their investments and therefore for shorts in total to lose another 2.32 billion dollars. On top of what they would have already lost this year on some of their long positions through january february and march, i imagine they are starting to really feel the pinch. Now. Interestingly, even though the s p, 500 has been running over the last week, potentially creating additional margin for a number of these hedge funds, it seems like goldman sachs is saying that in general, hedge funds are still deleveraging now, even though, over the last week, the s P 500 has been absolutely flying, potentially creating additional margin for these short hedge funds.

Goldman sachs is saying that in general, hedge funds are still deleveraging and selling off their shares and reducing their leverage position. Goldman said that hedge funds have de-leveraged for 12. Out of the last 16 days now, obviously, when a hedge fund borrows money from another hedge fund, that is a process known as leveraging, which is what citadel does significantly citadel, only holds around 40 billion of its own money and its investors money and borrows an additional 200 billion dollars from some of those large banks, therefore citadel, has a total portfolio size at the moment of somewhere between 230 and 250 billion dollars. Right now, citadel is leveraged somewhere around seven to one and therefore for every one dollar of citadel's own money that it holds.

It borrows an extra six dollars on top of that, and what goldman sachs is saying is that, over the last 12 out of 16 days, hedge funds in general have been paying back these loans and reducing their leverage position, because they know the market collapse or market Crash is still not over, and this is more of a fake bull trap to convince people to buy more shares before bringing the market down even further and therefore, even though right now the market may be running over the next few weeks. It's likely to continue to fall and again the short sellers are likely to feel the pinch. Even more now, as you can see here, amc has well and truly broken that down trend and it's looking less and less likely that this is a false breakout and is less and less likely to return into this downtrend now, as pinoy ape shows, even though we've Broken that amc downtrend, we still haven't yet broken out of this channel - that's been going since 2019, and therefore amc still has some ways to go before the squeeze is really underway, even though we did pop above 22 per share for a matter of a few seconds. It was quickly pushed back down below 22 dollars for a false breakout.

If i zoom in here, you can see the wick very quickly passed above this channel before falling back inside the channel, and so far today has been falling slightly further and again, as i said in my previous videos, i do think that when we break this channel With conviction that amc is likely to go much much higher and return back to 40 and above very, very quickly now you may ask tom: what's caused the amc in gamestop run up over the previous few days and new york angelo has some ideas. What may have caused it now? New york angelo hasn't offered his source for this quote, but it says a top prosecutor, a short seller's confession and a columbia professor offer clues to the department of justice probe of those short sellers. So it seems maybe one of these short sellers have squealed, or one of these short sellers has informed the sec of exactly what's going on, as it seems, the department of justice now have a short seller's confession on record, guys be sure to. Let me know down in the comments below what you think about robin hood and a number of other brokers preparing for the squeeze aka preparing to turn off our buy buttons again and as always guys.

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