Welcome back to the channel everyone today, i want to explain why that aims squeeze is easy and how we've been massively overthinking it. I want to tell you what we've been doing wrong and what we need to do to cause amc to squeeze so stay tuned and let's make some money, and now i want to dive straight in with the information. So first i want to go through this tweet from user of intellect and explain why i don't necessarily agree with it. He said retail investors with less than three years of experience, should avoid options trading at all costs.

He said i don't know why. Wall street bets is trying to convince you to buy gamestop and amc options. Let the big money do that by lit drs and hold is still the main and the best strategy. Time is on our side.

So to explain why i don't agree with this. I think i need to cast our minds back to december of 2020 and january of 2021.. Back then wall street bex was a fairly small form on reddit, with only 1 million users. There was a fairly small group of investors that knew about the gamestop play and knew how overly shorted gamestop really was, but it wasn't really too popular on wall street bets, and it also wasn't really that popular on any other form outside of wall street bets.

Right now, wall street bets has 11.5 million members and therefore, obviously the whole form has grown massively since gamestop and amc ran back in january and obviously again in june, the amc stock subreddit hadn't even been created, as it wasn't created until january. The 27th 2021 again twitter also wasn't really discussing amc and gamestop. Apart from a small group of people. Now that fairly small group of people knew how overshorted gamestop was and had been buying shares and also had been buying call options in their favorite gamestop stock.

Right now, you can currently get a free share of amc. On top of the usual five free shares, valued up to three thousand five hundred dollars each with moomoo, when you sign up using the link in the description below and make your first deposit mumu are an excellent commission free broker that don't make their money from payment. For order flow, mumu and futu make their money from margin interest and from payment fees, and therefore you don't have to worry about your trades, going through sketchy, dark pools and being given to citadel mumu also have excellent technical indicators and advanced charting tools. They even publish daily short selling volume on top of a number of other important pieces of data when you sign up for moomoo and make your first deposit, you get.

The first two free shares valued up to three thousand five hundred dollars each. If you can deposit a hundred dollars, you also get that free share of amc, and if you can deposit the full two thousand dollars, you get the additional three free shares as well. Bringing your total to five free shares, valued up to seventeen thousand five hundred dollars and the free share of amc. If we head on over to the price chart for gamestop through october november and december and the start of january, it slowly made its way from around three to four dollars.

All the way to around 20 to 22, so ryan cohen joined the board of gamestop. On the 11th of january and on the 13th of january gamestop had this massive run up from lows of 20, all the way to the highs of 38. Now, on the 13th, this is going to be hitting people scanners that are looking for stocks that are gapping up and also hitting new 52-week all-time highs. On the 13th, this stock would have primarily been traded by large groups like atlas trading and warrior trading.

These groups like to use options to maximize their profits. These are typically quite high risk trading groups that tend to make a lot or lose a lot now. Also on the 13th gamestop started, hitting news articles on bloomberg, suggesting that gamestop had surged the most ever in a short squeeze now, obviously, over the next few days, it started receiving more and more and more media attention and more and more and more people were joining Wall street bets it had another similar surge on the 22nd of january from lows of around 42 to highs of around 76 and then obviously, over the next few days. It also started receiving more and more and more media attention, taking gamestop all the way to 483 dollars per share.

Now, at this time, many people didn't really know what gamestop was all about and hadn't read through the hundreds and hundreds and hundreds of hours of due diligence and watched, hundreds and hundreds of hours of youtube videos. At this time, gamestop was primarily being traded by users on robin hood that tend to use options more than they actually buy and hold shares now. I know this is an absolute fact because, listen to what thomas petty has to say right here, let's just start with this simple question: how close we were to this system breaking something failing how close were we thomas? We were frighteningly close on on january 28th, when uh we had 50 million registered shares. At the same time, we had uh 70 million shares short and 150 million 150 million shares short uh by our short call options.

So if the core options had been exercised, the shorts would have had to deliver 270 million shares, while only 50 million shares existed. So, as the rules are today, the long broker has to if he can't get the shares he has to go into the market and buy the shares at whatever the price is so that could have pushed the price uh further up into the thousands uh. When that happens, obviously the shorts cannot pay up uh, so the brokers uh they default on the brokers. The brokers default on the clearing house and the the whole thing is a is a huge mess, that's impossible to untangle so right.

There thomas paid to be confirmed, there was obviously 50 million gamestop shares. Many of these shares would have been held by institutions because prior to january's run up. Nobody really knew about the gamestop play, especially not in the massive numbers that know about it now. So, therefore, back in january, apes wouldn't have owned 80 or 90 percent of the gamestop float.

They would have held a fairly small percentage, but what we did have back in january is 150 million call options. Three times the gamestop float for amc's equivalent. That's around 1.5 billion amc shares in the call option. Equivalent 150 million gamestop shares divided by 100 shares per call option.

Contract is around 1.5 million, calls that would have been in the money or out of the money and 1.5 billion amc shares worth of call options. Would have been around 15 million call option contracts either in or out of the money for amc's equivalent now, actually, back in june, amc didn't have nearly as many call options but still managed to have a very similar effect. Back in june, there was around 481 000 call options in the money and around 233 000 call option contracts were traded on the 2nd of june now. Obviously, this poster on reddit only shows the 481 000 calls in the money, and it doesn't show the number of calls out of the money.

Maybe there was another million calls out of the money and therefore 1.5 million calls total, which would have been a very similar number to the number of call options that gamestop saw back in january. But the interesting thing with amc is the number of contracts and the value of contracts that were traded on that 2nd of june day at 10 past 12. On june the 2nd there was a call option: contract purchased for 410 000 that was followed by one for 300 thousand, followed by another one for seven million and shortly after followed by another one for three point: three: two million all in around an eight minute period. So that's millions and millions and millions of dollars that were traded in june options on june, the second alone - and i think that's why amc had a dramatic run up in june.

Not only did we have a similar number of total options, around 500 000 calls in the money with potentially around 1.5 million calls total, but there was tons and tons and tons of calls traded on that date on the 2nd of june. So to me it seems that holding 80 or 90 of the amc or gamestop shares isn't what caused the january or june run up. Yes, we did own 80 of the float in june, but we still own 80 of the float now and it's not caused any more run up since and back in january. We definitely didn't own 80 percent of the flow in either amc nor gamestop, but we still had the january run.

But what we did have in january and june that we haven't managed to replicate since is the sheer amount of options that were in the money, but also out of the money as well, but mainly focusing on in the money. If we have a look at the options chain for the 14th of january, we only have around 120 000 call options total nowhere near to that 1.5 million figure. And again, if we look at some other options, dates like the 28th of january, the 4th of feb or the 11th of feb, we have nowhere close still to 1.5 million options, even if we add all of these together, there's less than 60 000 option contracts. Now, the only date that we have, that has a very high number of call option.

Contracts is here the 21st of january 2022, where we have nearly 700 000 call options again. 700 000 is still a far cry from 1.5 million, like we had back in january. In june, but it's as close as we've been ever since june, even if we look at some of the other options chains like this one from back in october, the 15th there's still nowhere close to eight hundred thousand options. Here it looks like there may be two to three hundred thousand options tops probably closer to two hundred thousand.

So, yes, we bought the amc float probably multiple times over, but what we haven't managed to replicate from january or june is the sheer amount of options calls that are either in the money at the money or out of the money as well. Now i do partially agree with user of intellect's post here, because we shouldn't be buying the massively out of the money. 145 calls we should be buying the in the money or at the money options, because these are the options that need to be hedged for now. I do also agree that big money needs to get into it as well.

Many of these options that were purchased on the 2nd of june, most probably weren't by retail investors - there's probably not that many retail investors like you and i that have a casual 7 million dollars to buy amc, calls with or 3.3 million or 1.2 million. Many of these options - purchases on the 2nd of june, were likely performed by large hedge funds and other institutions. But i think what we can do is amplify the size of this 21st of january 2022 options chain and try and entice some of those large hedge funds and institutions to also buy calls as well. If we can get this in the money and out of the money options, figure closer to 1.5 million options and not closer to 700 000 options, it could entice more large institutions to also buy calls as well, and i think that is what's going to cause.

The amc squeeze it's not by buying more shares because we already own the flow and we already own the float multiple times over. It's creating a catalyst that, when exercised, is going to cause hundreds of millions of shares to be purchased all. At the same time, when we exercise those calls guys be sure to, let me know down in the comments below what you think about the purchasing of call options. Do you think that is the way to cause the squeeze and, as always guys if you enjoyed this video, be sure to check out some of my others, alternatively, subscribe to the channel and bring that notification bell, because that way you'll be alerted.

When i upload a new video cheers.