Today I Want to talk about how the shorts must close on conversion? but I also want to explain how to try and mitigate any massive price Rises by shorting the newly created shares at the same time as closing the old shorts. But oh, there's a whole host of problems the shorts will face in doing so. so stay tuned and let's make some money. And now I'll drive straight in with the compilation.

So Define a starter by reminding us saying if there's no chance of an AMC squeeze, why are they still here every single day begging us to sell our AMC shares He said, if the shorts aren't in trouble, why are they filing lawsuit after lawsuit after lawsuit against AMC And if they're teasing you day in and day out about losing money and becoming bag holders and being terrible investors, why are they still begging you to sell shares and trying to convince you that AMC will not squeeze? Now that could be tweeted saying the reverse split is such a complex process that will make shorts adjust or close their shorts and he said both ape and AMC will get a new Q-sip number and become a completely different security from the one that was originally shorted. We also have proof: AMC is becoming a completely new security because of the new Qsip number because all of the AMC options are changing as well AMC changes to AMC 2 one AMC changes to one AMC 2 and 2 AMC changes to two Hc2. That's a whole host of different AMC and eight options, both new and historic options, all changing. On the conversion and reverse split date because AMC is becoming a completely new security.

Now, we know from previous literature that real covered short positions don't need to close during accusip change as the short position just swaps over to the new Q-sip but any kind of FTD IOU or synthetic short position must be closed out of during the Q-sip change. Now, some people have been incorrectly saying the old shorts attached to the old Q7 number will simply go to the Obligation Warehouse and rot there forever. Now this is incorrect as old shorts only go to the Obligation Warehouse when a stock is chilled or has the same kind of U3 trading Hull the Mmtlp has, so there are four shorts that aren't real covered shorts where they've actually located a share to borrow. AK All of those Ftds, Ious, and synthetic shorts must indeed be covered on the conversion, reverse split, and Q-sup change.

But I also want to explain what the shorts will try and do to minimize any kind of massive price impact. So let's say we have two, four, six, eight, or ten billion synthetic shorts that all need to be closed on the same day during the conversion and reverse split. What the shorts are going to do is firstly close the shorts in the after hours trading where there's minimal price impacts. They're also going to create new shorts in the new AMC Q Sip or new AMC security at the same time as closing the old shorts.

And they're also going to do this in small batches of, say, a million shares at a time, going backwards and forwards over and over. Okay, they're gonna buy a million shares to close out of the old short positions, and then short a million new shares, close out of a million old shorts and short. A million new shorts close out a million old shorts and short A million new shorts over and over again until all of their synthetics are transferred over. As a prime example, they're going to close out of a million old shorts, which may push the price from forty dollars per share post split up to 45 dollars per share, but then they're gonna assure a million new shares, pushing the price back down from 45 back to 40.

And they're effectively going to do this over and over again using keyboard hotkeys, which are effectively keyboard shortcuts. So they could map these hotkeys to their B button to buy a million shares and their S button to short a million shares. So all they have to do is tap B, S, B and S over and over again until all of their shorts are transferred. And they're likely also going to do all of these trades either in the dark pools or privately over the counter, so none of this massive volume actually hits the stock exchange tapes.

But let's talk about the whole host of problems these Shorts are going to experience trying to buy back all of these old AMC shares and short new AMC ships. You can also currently get a guaranteed free share of Tesla a 50 cash reward I'm up to 15 free shares which you could always use to buy more shares of AMC Ape or of GameStop All you have to do is sign up to MooMoo using the link in the description below and make the required qualifying deposit. MooMoo is easy and it's free to sign up. It just requires that temporary deposit and it's a really great way to help support my channel and help support me as well.

Memory is also very easy to use. They've got tons of technical indicators and advanced charting tools and their own options trading platform. The first problem we have is this massive disparity as Cat Striker has tweeted between the bid and ask spread. Now, this actually ties into all of those previous messages we've had from Dave Murphy about the AMC order imbalances.

So we can see from these multiple screenshots that Cats posted. The current bid order is 3.69 but the current Ask order is a hundred and seventy dollars. So the current bid order which is a buy order for AMC is at 3.69 That buy order has either been placed by your me looking to buy more shares of Ape, it's placed by Shorts looking to close out of their short position at low at low prices, or it's placed by institutions wanting to buy more shares of AMC as well. But the problem being is the current Ask order, which is the lowest sell order is at a hundred and seventy dollars per share.

And that's because nobody is selling shares below a hundred and seventy dollars. That's why we have this reoccurring order imbalance because there's tons of buy orders waiting to be filled. but nobody is selling AMC shares on any exchanges out there to fill those buy orders. Obviously, until either Ken or Doug comes through with their magic liquidity fairy abilities to fill that order when there's no shares available.

The massive problem being is where these Shorts gonna buy millions and millions of shares of AMC to close out of their old Q7 short positions? If no one's selling, are they going to get Ken Griffin and Doug Sifu to use their magic liquidity variabilities to stamp up all of those sell orders when there's no selling shares available, Which effectively transfers that massive synthetic short position from those old Qsip numbers onto the books of Ken Griffin at Citadel Securities and Doug Sifu at Virtue, because obviously these two market makers will then need to fill all of those previously filled orders with real shares, which obviously they can't find because no one is selling. You also have the problem that if the price of AMC starts running while the Shorts are closing of their old Q6 short positions, they're gonna have to short more shares of the new AMC stock to push that price back down. AK They may end up transferring 4 billion old AMC shorts but having to short 6 billion of new AMC shares which obviously digs their short position even deeper and it seems this is already having an effect as cat. Striker tweeted because the cost to borrow for AMC is running up higher.

Again, the cost to borrow average is now up at 972 percent, cost to buy minimum is at 808, and the cost to borrow maximum is still yet again over a thousand percent. And the reason why the cost to borrow is still running is because AMC has reached its 38th day straight on the threshold Securities list which again adds to the shorts problem even more and it may actually create a reason as to why they cannot transfer the old shorts into new shorts because obviously staying on the regulation Sho list for more than 35 days means that all Ftds need to close out of. they can't just transfer one day of Ftds to a different broker or a different Market maker. All Ftds all need to be closed out of all at once now.

TJ Strong has also tweeted about a new Weeble policy which allows them to shut down the system at any kind of convenient time. This new policy from Weeble talks about power failure, equipment or software malfunction or pandemic or other health emergency. They say we will make all the reasonable effort to notify users of the service in advance of service interruptions, but the Weeble does not bear any legal liability for any loss arising from any service Interruption suspension or termination, which again is maybe just Weeble preparing to turn off the buy button once again, especially now that Robin Hood has been found not at full or not at liability for turning off that buy button. Remember that Weeble is just another one of those Brokers that uses Apex clearing as their clearing firm.

Just another one of those Brokers that did turn off the buy button back in 2021 and therefore, if you haven't already, I would transfer to a broker that doesn't use Apex clearing or Robin Hood to clear their trades. Someone like MooMoo For example, Moomoo's trades are cleared through food too, and not through Apex clearing. Obviously, you don't have to sign up specifically with MooMoo just sign up with anyone that isn't Weeble Robin Hood or any of the other Brokers using Apex clearing. So guys, be sure to let me know what you think down in the comments below.

And as always, guys, be sure to ding that notification Bell because that way you'll be alerted when I put a new video. Cheers.