Welcome back to the channel everyone today, i want to talk about how the shorts are still pushing the price of amc down even to this very day. Today, i want to touch on a number of different tactics like synthetic shares and naked shorting. Obviously, unlimited rehypothecation, fake volume, wash trading and painting the tape, married and divorced, puts and finally gamma crushes and also how we can beat them so stay tuned and let's make some money, and now i want to dive straight in with the information. So, let's start by talking about the one that we all know most about, which is synthetic shares.

Obviously there is no limit on the number of synthetic shares that market makers can create and therefore, theoretically, there's no limit to the amount of naked shorts. There isn't some form of governing body or prime broker like bank of america. That turns to citadel and says, hang on citadel. You are the market maker, but we're telling you that you can't create any more synthetic shares.

Citadel doesn't reach two billion synthetic shares created and then all of a sudden, the create synthetic share. Button magically disappears from their keyboard and they can't create the two billion and first synthetic share. They just keep on creating them. There's nobody that turns the citadel into citadel.

You've committed too much illegal activity and created too many illegal synthetic shares. We think it's time for you to stop doing that, but i think the most important part about the creation of synthetic shares is simply that they're creating more synthetic shares that need to be covered. Need to be bought back and then cancelled if the hedges created 500 million synthetic shares to push the price of amc down from 70 to 30 and then have to cover all 500 million synthetic shares that will cause the short squeeze. But if they've created a billion synthetic shares to drive the price from 70 down to 15, when they cover all billion shares, it will still cause the short squeeze.

Therefore, theoretically, they can create as many synthetic shares as they like, because at some point they will have to cover those synthetics and amc will still squeeze. Obviously, their plans create so many synthetic shares and bankrupt amc and get it relegated onto the otc exchange where it will never escape that way. They never have to cover their synthetic short positions and don't have to worry about a short squeeze occurring, but obviously the only main problem with that is that amc won't ever go bankrupt and therefore amc won't ever be relegated to the otc exchange. And therefore, even though the shorts are trying to push the price of amc down and hoping that we forget about amc and set our shares, it won't happen and they will at one point, have to cover all of the synthetics they've created which will cause the short Squeeze now, let's talk about unlimited rehypothecation, because this may be a word that you haven't come across before so tom.

What is unlimited, rehypothecation there's an article here from routers that talks about how more than 100 of a company shares can be shorted once the short seller borrows the shares from the lender and then sells them back into the market. The new owners of the share is then free to lend them out as they so choose, just as the previous owner did as well, and they have no idea they're on the other side of a short sale settlement. Time is two days after the transaction. In that time, the same shares can be lent out again and again.

This makes it possible on paper for more than a hundred percent of the float of a stock to be shorted. Theoretically, this is how a stock can be shorted over 500 of the original float, using only the same shares, because those same shares are being lent out again and again and again, they said according to the financial analytics sperm s3 partners, gamestop's peak short interest was 141.8 Of its float on january 4th and the motley pool even gave a step-by-step example of exactly how this is performed. They said as an example, take a situation involving four different investors and he owns shares of gamestop and annie, and her broker have an agreement that allows that broker to lend annie's shares to short sellers and his broker then lends the shares to bob who subsequently sells Those borrowed shares short in hope that gamestop's share price will fall. An investor name's chris ends up buying those borrowed shares from bob, however, chris has no way of knowing those shares have been borrowed from annie to chris they're, just like any other shares.

More importantly, if chris has the same kind of agreement, then chris's broker can lend out those shares to yet another investor diane. Another gamestop bear can borrow those shares and sell them short to yet another investor who again may be chosen to lend them out now. You may say tom tons and tons of us already have our broker set to not lend out our shares and to that i have two different responses. My first response to that is that believe it or not in the uk, many brokers are forcing their clients to sign up for the share lending program or are forcibly closing their account.

You may say tom just go and sign up for another broker, but basically every single broker in the uk has now mandatorily enforced. This share lending rule trading 212, free trade plus 500 etoro, and many many more have forced all of their customers to sign up for the share lending program and are therefore forcibly lending out. Our shares and response number two would be to say that most of those brokers are most probably lending out our shares without our permission and are breaking the law because believe it or not. It's not unusual for hedge funds, brokers and market makers to break the law and do illegal things most of these brokers, prime brokers, trading platforms and market makers have all paid billions and billions of dollars in fines over the last 10, 20, 30, 50 100 years.

For committing illegal crimes and therefore there is no way that you can say tom fidelity aren't lending out our shares illegally. Fidelity have never done anything wrong, never paid a single fine and have never done anything sketchy or illegal, because well they have now i've done some research to try and find out if there's actually a limit to the number of times that shares can be re-hypothecated. Theoretically. Can the same one singular share be lent out over a million times from my research.

It doesn't look like there is a limit to the number of times a share can be lent out and rehypothecated. I did see some information that said in the us. Certain collateral can only be rehypothecated to 140 of its original value. Basically saying that same share can only be lent out 1.4 times and could therefore theoretically create up to 140 short interest.

But i then did also see that in the uk there is actually no limit or no cap to the number of times or the percentage that that same collateral can be rehypothecated. So, therefore, in the us, certain collateral can only be rehypothecated to 140, but in the uk that same collateral can be re-hypothecated. Theoretically, unlimited amounts of times that information only spoke about specific types of collateral and it didn't stipulate what types of specific collateral it was, but it said collateral in general and didn't actually ever mention shares and therefore, i'm still under the impression that the motley fool and Routers are both correct by saying that shares can be lent out unlimited amounts of times and therefore, theoretically, if there's only one singular share, that's held in one singular brokerage that allows share rehypothecation or share lending that same share could theoretically be lent out a million or A hundred million or a billion times guys, if you didn't already know mumu and future, have just officially announced that future does not accept payment for order flow and therefore you don't have to worry about your orders, going through sketchy, dark pools or being given to citadel And if you sign up with moomoos in the link in the description below and make your first deposit, you can currently get up to five free shares, valued up to 3 500 each and a free guaranteed share worth up to twenty dollars. On top of that, memo is a brilliant commission, free trading platform, with tons of technical indicators and advanced charting calls, moomoo publishes daily short selling data position, cost distribution and much much more moomoo is also very user friendly 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 to get up to 17 500 worth of free shares. Now, we've also got fake volume or wash trading and painting the tape. So what are those well as a definition from the nasdaq wash trading is a tricky form of manipulation when a big player buys and sells the same security continually and nearly instantaneously. The rapid buying and selling pumps up the volume in the stock.

Attracting investors, who are fooled by the spiking volume to buy weekly call options, and once again, this form of manipulation does not affect long-term investors effectively. These hedges can buy and sell hundreds of shares back and forth between themselves over and over and over again, just like high-frequency trading firms do and that theoretically creates the illusion of a massive spike in volume that massive spike in volume could be accompanied by a massive Spike in price, which could entice, tons and tons of people to buy those weekly call options, then the hedges crush the price of amc back down those options, expire, worthless and the hedges get to keep all of the money that wash trading can be combined with painting The tape painting the tape is a slightly less direct form of manipulation. Painting the tape is when a group of traders create rumors or activities to drive up the price of a stock. This involves trading the stock between themselves for slightly higher prices like that wash trading, and that creates the impression of activity or the impression of additional volume similar to that of churning it's an attempt to lure in unsuspect investors, who may then boost the price higher painting.

The tape usually occurs near the end of the trading day as closing stock prices are wildly reported in the press and watched by lots of investors, which can then lift the overall value of the company's shares and, by extension, the holdings of the manipulators. Therefore, painting the tape and wash trading can be combined to push the price of amc up and massively spike that volume enticing tons of us to buy more shares and more call options. The hedges can then bring the price back down by again trading shares back and forth between themselves for lower prices to drop the value of the stock, therefore, causing the options to expire worthless. This is mainly a problem when people buy massively out of the money call options which doesn't help with gamma ramping.

Gamma ramping could cause those hedges to lose control of the price where we would then be in control. If we can get the hedges to drive the price of amc up and combine that with a gamma ramp, we can get a gamma squeeze. But if we're buying those cool options that are massively out of the money like the 60 or 70 calls, then we can't ramp that gamma and we can't cause a gamma squeeze. Now again, i also wanted to touch on those married and divorce puts which i've spoken about on the channel.

Many many different times married in divorce, puts are effectively a way of hiding, fails to deliver and hiding synthetic shares within the options chain. They're effectively resetting the t, plus two t, plus three t, plus six t plus 21 and t plus 35 days on the felt delivers and the synthetic shares by hiding them in the options chain or transferring them between different short hedge funds and different market makers. Each time those ftds and synthetic shares are transferred effectively the settlement counter resets and the days revert back to nil now. Obviously, the main problem with the hedges doing this is that it's very expensive to pay off another hedgy and pay all of those transaction costs in order to reset those fails to deliver and therefore, at some point, these hedges will run out of money and won't be Able to reset their failed delivers and synthetic shares any longer and now.

Finally, i also want to talk about the hedges, crushing gamma ramps every single month by downloading the options chain data and to explain this one. I'm going to use a bit of help from the real dark pool, darkpool tweeted, saying buy and hold is all we need, with 90 to 90 of retail orders being re-routed to the dark pools off exchange and retail orders being met with a short to retail sale. The only way to move the price is through derivatives, all buy and hold has done over the last year was slow. The bleed, if we look at this photo back in january of 2021 amc and gamestop ran as a result of a gamma squeeze.

There was, then, a few month, long periods of buying and holding which did basically nothing for the stock before another gamma ramp up back in june that second gamma ramp up caused the price to explode from eight to fourteen dollars. All the way up to seventy three dollars again, it's then been followed by another six month period of buying and holding which has just slowly bled the amc stock dark pool said, as we found out with the january 21st 2022 options chain. They download the options chain. Data daily in order to hit max payne so leaps, don't have any surprise gamma, as they can be delta hedged over time when everyone targets one specific date in order to try and cause a gun, a squeeze, the hedges can be ready for it because they're downloading The options change data on a daily or monthly basis to prepare for any potential gamma squeezes.

Now i think, there's two main ways around this. When the hedges believe they're safe, they won't spend as much time and won't put in as much effort downloading this option to chain data, and at that point we will catch them off guard again or, as dark paul says. The keywords i've been seeing here are short dated out of the money or in the money or at the money call options. If we're playing the slightly shorter dated options, it doesn't give the hedges as much time to prepare for those gamma ramp ups and those gamma squeezes.

The screenshot here says in a gamma squeeze the price of a stock quickly increases based on traders, buying many cool options to drive up the prices of select stocks due to option sellers needing to hedge their trades on the underlying stocks. Thus, a gamma suite can happen when there's a widespread buying activity of short dated call options in a particular stock, and he says directly from a short sellers report. It states they are no longer as fearful now as they were before, as retail has stopped buying short dated out of the money or at the money calls. The short sellers report says the market is within a whisker of all-time highs, and yet our short book is doing well.

The retail mania has slowed the most excessive sign of retail mania. Massive investment in short, dated out of the money call options has slowed dramatically. We are far less scared of a gamma squeeze in one of our names than we were back in february of 2021 and darkball says it's not financial advice, i'm just explaining how delta causes movement in markets. They use.

Derivatives to short, due to de-hedging stopping options was a psyops campaign and they also use strategic filter delivers after hours to increase, implied volatility. I think this may be from investopedia. That says deep in the money options have a very high delta level, meaning the options will move nearly in lockstep with the underlying asset. It says, as a call option moves deeper into the money.

Its delta will approach 100 at this delta. Every point: change of underlying asset price results in an equal, simultaneous option, price change in the same direction. For this reason, deep in the money options are an excellent strategy for long-term investors, especially compared to at the money or out of the money options. Investing the option is similar to investing in the underlying asset, except the option.

Holder will have the benefit of lower capital, outlay, limited risk, leverage and greater profit potential, and therefore i really do believe that to push amc to new highs, we need another gamma squeeze. We need to play those options, not wildly out of the money, reckless options that have no chance of ever coming to fruition. We need to steadily build a gamma ramp to ramp the price of amc up and we need to catch the hedges off guard when the hedges believe that they've won. They won't be monitoring the options chain as closely, and that is our chance to catch them off.

Guard we don't necessarily want to target those quad witching days when the weekly, monthly and yearly options all expire exactly the same time, because that's a very predictable time for a gamma ramp. We need to catch them off guard and we need to steadily build that gamma ramp and not buy those wildly out of the money call options. Now i can't tell you the specific day or the specific week that we will catch them off guard and create that gamma ramp. I just know that at some point it will happen because the hedges will slip up guys be sure to.

Let me know down in the comments below how you think the hedges are still pushing the price of amc down even to this very day and as always, guys, if you enjoyed this video, be sure to check out some of my others. Alternatively, subscribe to channel and ding that notification bell, because that way, you'll be alerted when i upload a new video cheers.