Welcome back to the channel everyone today, i want to talk about how shorts are down a whopping, 2.7 billion dollars in a matter of only two days, and i also want to talk about this put option glitch that i've seen and explain. What's going on so stay tuned and let's make some money, and now i want to dive straight in with the key information so unusual wales, tweeted saying with bbby amc and gamestop rallying it's estimated that shorts will have lost potentially 2.7 billion dollars in a matter of Only two days that is absolutely massive now later on in the video i want to talk about how all of these short squeeze plays, are interlinked and go through korean's basket due diligence, but before i dive any further into the video, if you haven't already be sure To sign up with moomoo they're, currently giving away over two hundred thousand dollars to celebrate futu's, ninth anniversary, all you have to do is download the moomoo app open, an account deposit, at least a hundred dollars, and play mumu's. Let's move game, the top 5 000 players will qualify to win the 200 000 giveaway. You also still get the special thomas james.

Investing promotion of three free shares during this period as well so be sure to sign up using the link in the description below, but remember to deposit at least a hundred dollars to begin with the chance of winning the prize pool of two hundred thousand dollars also Be sure to deposit more two thousand dollars to get that third free share of gm as well. Now i also wanted to touch on and talk about, amc's performance today from a few different angles. Firstly, i wanted to talk about the volume. As you can see, volume is starting to increase.

Now the amc is running back upwards. This is actually the highest volume we've seen since the 30th of september, when amc ran all the way from around 33 to around 42 over the next few days. I expect this volume to continue increasing and i expect us to pass the 45 area and get close to the 52 area and, if not sail past it as well. Also looking at the macd, we have this lovely looking green spike.

Now the macd has flipped positive again. So, even though, when looking at this bar, you might be a bit confused and see where the bar's red there's not really too much going on. We were up at 44 at one point, but they crushed us back down to 40 dollars. I don't know whether that's good or whether that's bad, but if we scroll back to may, we can see many many bars that look very, very similar.

We've got this one here on the 14th of may this one on the 20th of may the 28th of may, and also the 1st of june as well. There are also either red or very, very small, looking bars. Typically, this candle shows indecisiveness because the bulls and the bears couldn't really decide which way to take the stock. I think that's very, very true.

At the moment, obviously, retail investors want amc to moon and the hedges are trying to do everything their power to keep it down. But overall, i think with the macd flipping positive and volume coming back to amc. I think today was very, very positive and i'm very excited to see how tomorrow shapes up as well. My prediction for tomorrow is a break over the 45 resistance, which would take us over this level from the 19th of october.

I also wanted to touch on this post from reddit, which i've seen many many times over over the last week or two. All of my amc. Predictions have been right big day tomorrow. As you can see, this guy's listed his predictions for the previous week or two, and also for the following week or two as well.

These predictions are based on the cycle theory and that short little video. I showed you where we take the january to june graph and place over the current period time now. I also wanted to talk about mark hodes formally joining the amc ape army. He tweeted saying ha.

I bought 50 000 amc. This am for. I too think many people are short it and we'll watch carefully. So, as you can see, mark bought 10 000 shares here.

Another 10, two more sets of five thousand, which took his total to thirty thousand. He then sold off ten thousand and bought the ten thousand back, bought two more sets of five thousand taking his total to forty and another ten thousand here, taking the total to fifty thousand. Now, i'm not really too sure why he sold off the 10 000 and then bought them back. Maybe it was a mistake, or maybe it was some careful tax planning.

If you have a look, he obviously bought these shares at 37.50, 60 and 70, but sold them for 37.46 and therefore obviously took a small loss on those shares that he sold either way. 50 000 shares at 37.38 is around 1.8 million dollars and therefore mark codes is really putting his money where his mouth is. Clearly, he also sees amc, absolutely blasting off over the next few days or the next week or two in november. Now i also wanted to touch on some other people that also believe in amc running up and blasting off over the next week or two having a look at the 13f filings on whale wisdom, we can see a few new additions to the ranks.

We've got asset management, one company buying an additional 217 000 shares. We've got royal london asset management also buying an additional 178 000 shares. Elo mutual pension insurance company buying 34 35 000 and van eck associates corporation buying 127 000 shares. That is some very large position.

Ads and some very interesting institutions buying in we've got asset managers and even more pension corporations as well. Now i also wanted to talk about this put option. Glitch that's going around as well as you can see here. Clear harbor asset management have 32 500 options with a market value of 1.2 billion dollars.

Now, 32 500 options doesn't have a value of 1.2 billion dollars, because that would mean the average value of each option is around 38 000. Now, if you basically delete these three zeros off the end of that market value and get 1.236 million dollars and divide that by 32 500, that gives an average value of 38 dollars and six cents. Now, at the 30th of september, amc was trading very, very close to 38 and six cents and therefore i think it's much more likely that these three zeros have been added on by mistake. In some other platforms like fintel, it shows the value in round thousand dollars.

So, for example, this isn't 335 dollars it's 335 000 and therefore somebody went to enter 1.2 million dollars, but forgot that it was calculated in round thousands and therefore accidentally entered 1.2 billion dollars instead of 1.2 million. Now i also wanted to touch on some actual data for amc, and i wanted to talk about the amount of options that are currently in the money or the lack of put options that are currently in the money. You can see here that for puts out of the money, there are tons and tons of puts out of the money, but in the money options there's very very few whatsoever. Clearly, the hedges were not expecting us to break out of that 40 area, and now pretty much all of their put options are out of the money and are soon to become worthless.

Having a look at the call options, though, we now have tons more call options that have just gone in the money. We do still have a lot out of the money as well, but hopefully over the next few days in the next week. Pretty much all of these will turn in the money as well. As i said earlier in the video, i also wanted to touch on crayons basket theory.

His theory is that all of these short squeezed plays or meme stocks are basically all together in the same basket. He theorizes that some hedge funds or institutions or market makers basically went overseas and pretty much created an etf of meme stocks that they could shore. Now, as i'll explain, it's not exactly an etf, it's just a basket of stocks that they've created using futures and derivatives that they're shorting overseas and therefore don't have to report on and therefore when one meme stock makes a move like bed bath and beyond. It affects all of the other meme stocks like amc, gamestop and all of the others as well.

Some guys simplify the due diligence said too long. Didn't read. Hedge funds use derivatives to short, an entire basket of stocks, bed bath and beyond being one of those. It helps to explain why this group of 6 to 12 stocks, maybe even more all in totally unrelated industries, seem to move in tandem and their charts look pretty much exactly the same crean's.

Everything theory was that hedge funds created offshore entities and entered into total swap returns or total return, swap agreements with broker-dealers. My favorite explanation for these is as follows: think of it as a car lease you want the benefits and perks of owning a car, but you don't want to put the money down to buy it outright. So, instead, you make a smaller monthly lease payment, but get all of the benefits of owning the car. When the hedge fund enters into these swaps with broker-dealers, the broker-dealer takes a short position and buys the car and passes on all the returns to the hedge fund.

In exchange, the hedge fund pays them a small lease payment, but since the hedge fund has an offshore entity, they do the deal through, they don't have to report their short position to finra, and also these hedges aren't technically holding this short position because it's held by The broker-dealer and the hedge funds are effectively just paying the rental payment for the short position. They do this on a full basket of entities that they also intend to short publicly. Basically, the basket is full of companies. They have targeted to kill and profit off of the thinking, though, is that broker dealers don't want to take on the full risk of the short in case of counterparty default, so they were hedging with futures which have set expiration dates for a while, at least this Resulted in predictable run-ups leading to those dates which were basically quarterly when gamestop sneezed in january.

It caused the whole basket to sneeze with it, because the hedge funds were probably getting margin calls on all of them all at once. It seems like it's happening again currently, which is something to get excited about, but this time the only basket stock that had any real breaking news was bed bath and beyond. Can you believe it the bed bath and beyond could be the catalyst we've been waiting for? All this time and could actually start the short squeeze, and also i wanted to touch on something that i think is very very concerning janet yellen is to meet with bank of america, ceo and other finance ceos as well. To me, this reminded me of this scene from the film too big to fail.

Hank paulson over here called an emergency meeting with the ceos of every single major bank in america. This was just at the time of the financial crisis where he announced the tarp program, which is the troubled asset relief program. I think this meeting was jeannette yellen, basically briefing all of the large bank ceos. What's going to happen if the debt limit isn't increased and effectively preparing them all for the next economic crash, if you haven't yet seen the film too big to fail, i would urge you to go and watch it as it's a brilliant film, very, very similar to The big shore guys be sure to let me know down in the comments below what you think about the shorts losing over 2.7 billion dollars in only two days, and also while you're down there.

If you haven't already be sure to sign up to moomoo to get those three free stocks and a chance to win the prize pool of two hundred thousand dollars 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.