Welcome back to the channel everyone today i want to talk about wall street veteran charles gradanti, exposing naked shorts and synthetic shares. He even speaks specifically on gamestop and amc, so stay tuned and let's make some money, and i want to dive straight in with the key information. So obviously i don't want to show you this full 12-minute interview. I'll just read you some of the highlights and show you this short one-minute 40-second clip, but if you do want to watch the entire interview, obviously i'll leave it in the link in the description below so charles bradente is the co-founder of hennessy group llc, who currently Runs a family office, he joined the 2021 palm beach corporate governance forum where he discussed regulation of meme stocks and retail traders, along with heavy options trading.

He also addressed the prevalence of naked short positions taken by major market makers, actions that he believes should result in more severe punishment so right there, he is saying that major market makers aka citadel for definite, took naked short positions in gamestop and amc. Additionally, he voiced support for retail investors who forced a short squeeze earlier this year and nearly toppled gabe plotkin's melvin capital management, mr grelante zeroed, in on a phenomenon that has recently been neglected by mainstream financial media. The power of heavy call option buying to drive outsized moves in underlying stocks so right there he's literally explained exactly how to cause a short squeeze. The power of heavy call option buying to drive outsized moves in underlying stocks.

The reason why heavy call option buying drives such outsized moves is because of the gamma effect and how much it exponentially increases now. Obviously, you shouldn't buy call options that expire tomorrow afternoon. It's basically about collaborating and buying specific call options that expire in the future. All at the same time, you know just like those nearly 500 000 call options that are expiring this january, the 21st.

He said in an ideal world a market maker can match cool buyers and sellers perfectly, but when cool demand outstrips supply, market makers tend to sell calls themselves and also purchase underlying stock as a hedge, potentially triggering large price swings. While regulators are aware of the practice, they appear unsure on how to manage it. He said so literally right there, charles gridanti, is saying that we need to buy calls in massive massive volumes, specifically all for the same date, because that way, market makers will sell us. The calls themselves and purchase the underlying stock as a hedge now.

The reason why this is the most effective way is because it's far cheaper to buy one call option for amc than it is to buy 100 shares. Now i want to explore something interesting that i think could help us along the way. The problem that we've been experiencing so far is that we've been buying tons and tons of cool options that are out of the money and when it comes to expiry time, they always expire out of the money, because the hedges push us down. But what about buying call options that are in the money? Because the hedges will still have to hedge for those call options that are in the money but they're in the money and therefore likely to expire in the money as well.

And therefore, we could always just exercise them for the underlying shares. Mr gradanti spoke to corp gov last year about the infamous battle between retail investors and hedge funds at the height of the melvin capital drama. At the time he voiced concerns about settlement risk and solvency. Among robin hood and other larger broker-dealers, mr grananti is also known for sparking a legendary debate about the risk of hedge funds growing too large, rather than focusing on finding investments where they have a competitive edge.

Mumu is an excellent commission-free broker and they don't make their money from payment for order flow. Mumu and futu make their money from margin interest and from payment fees. That way, you don't have to worry about your trades, going through sketchy, dark pools or being given to citadel. On top of this moomoo also have excellent technical indicators and even published daily short selling volume.

On top of that, they also publish a number of other important pieces of information and right now you can currently get 5 free shares up to 3 dollars when you sign up to moomoo, using the link in the description below and make your first deposit. So that's up to seventeen thousand five hundred dollars in free stocks, just for signing up with moomoo and making a deposit. So now let me show you this clip, so you can hear exactly what he had to say and that's the typical short selling, but that's not what happened with gain stock it did in the beginning, but when the shorting got out of hand on the hedge fund Side of the fence, the market makers created synthetic shorts. The synthetic shorting and naked shorting, which is illegal you can a market maker, can do, can execute naked shorts insofar as they're facilitating a trade they're not to facilitate someone shorting a position for an extended period of time.

So the regulators are looking at that now as to whether or not there was this naked shorting by the market makers on behalf of the hedge funds, in order to facilitate the shorts - and i think, they're going to uncover that there were some issues there, which gets Me to a final point: i'll give it back to you. The penalty for naked shorting is really not significant enough to stop it citadel and goldman, and all of the players get fined constantly for uh doing this as long as it's not intentional and never is intentional, they get fine and i think one of the things we Need to do is discuss increasing the fines for this lapse of memory and inefficiency in the system to the point where people wake up and pay attention right now you know the fines are insignificant, so there you have it. Charles gridanti is literally saying that naked shorts do exist and citadel created all of these naked shorts in order to benefit themselves. So, who is charles gradanti and what exactly makes him an expert on wall street well from wikipedia he's an american businessman in the hedge fund industry, appearing on tv and before the us congress, in that role? He's a hedge fund, co-founder founding hennessey hedge fund llc and he's known for his hedge fund, knowledge and expertise and he's one of wall street's most sought.

After opinion leaders for financial and economic areas, it says in 1997 gradante and his wife, elizabeth hennessey granty, took the firm private, which is the hedge fund, private and co-founded. The hennessey group llc at its peak, the hedge fund managed more than 1.6 billion dollars in investments. For clients, and on top of that in 2007, grantee predicted the looming cds, cdo home mortgage crisis. Grantee is one of wall street's, most sought after experts on matters of the stock market, the global economy, hedge fund strategy and asset allocation.

He has testified before the us house of representatives, as a hedge fund industry expert, discussing the systemic risk in the wake of long-term capital management. So this guy really is the real deal. The big dog, the big potato he's not just somebody that previously worked a hedge fund. He actually run a hedge fund and is one of the most well respected people in the entire hedge fund industry.

Guys, if you haven't already i'd, really encourage you to share this video, obviously down below and also to watch the full interview that way. We can get charles's message out there and viewed by more eyes, especially as he's so well respected in the industry. Maybe the sec or the department of justice, or at least somebody will do something about the prevalent naked short positions now guys. I also want to talk about an interesting correlation between the percentage of short volume of the overall traded volume on each day and the amc price.

We know that on an average day, we typically see 56 55, sometimes even 60 percent of volume actually being short volume, and obviously this has been happening now for some time, but there's an interesting correlation between when this short volume percentage is high and when this short Volume percentage is low. You can see back in may june. There was a very sharp fall in the short volume percentage, followed by a very sharp rise. This then sustained for a short while and then it fell again, just as amc was starting to run up.

Obviously, in this period, between 50 to 60 percent of all daily volume was short volume while it ran up. This fell to only around 30 to 40 percent of all volume being short volume. Now, back in october, the amc short volume percentage actually fell and maintained. This lower short volume percentage for a short while during that time the price of amc ran from around 30 35, all the way up to around 45 dollars, but just as it was ready to move higher, this short volume percentage rocketed back up, crushing the price of Amc now, for a long time, this short volume percentage has maintained that this 50 to 60 percent daily level and the amc price has been falling more and more.

But i think when this short volume percentage falls again, then amc will start to run up. Obviously, the hedges have been trying to maintain this high short volume percentage for as long as they physically can, because they know that if they let off the gas and drop the short volume percentage, they're screwed, as you can see over the last week, they've actually tried To increase the daily short volume percentage again, pushing higher to 60 to 70 percent of all volume on a daily basis being short volume, because they know that if they only start shorting 30 of the daily volume, then amc is gon na run to the moon. It says short volume is holding high and climbing again look how the short volume percentage compared to amc's price seems to correlate extremely inversely to each other. When this comes back down, amc will be running now.

Chris says i suggest the apes get deadly specific about their wants. What they're asking for what their plan is, and he also says that you should write it down, circulate it and get it aligned. He says if the smart money is trying to create chaos and to distract you, you need a north star to guide you and to quieten the trolls. Now, obviously, i can't tell you what to sell at, and i can't tell you what the plan should be for when you sell your shares during the amt squeeze.

But what i can do is be your north star during the squeeze. What i can do and what i will do is live stream all day to keep you comfortable and to keep. You worry worry-free i'll, tell you what i see going on and tell you whether i think amc is having another run-up and whether it's likely to pull back or whether i think we're actually enacting the squeeze. Obviously, there's been a lot of speculation.

The hedges may bring us up again over a hundred dollars to try and then crush us back down. So while i'm live stream, i'll be talking about what i'm seeing and whether it looks like the hedges are running us up to bring us back down or whether we're actually starting off the squeeze and now. Finally, i want to quickly talk about bank of america paying a 42 million fine in a new york masking probe. Obviously, this article is from a long time ago back in 2018, but i want to talk about the funds that benefited from this bank of america masking probe schneiderman said the masking scheme affected more than 16 million trade orders and 4 billion shares benefiting firms such as Madoff securities, i'm sure i don't need to tell you who owns that citadel securities again, i'm sure i don't need to tell you who owns that de shore again, i'm sure i don't need to tell you who used to work there.

If you didn't already know it was gary gensler, it also benefited knight capital. Now, the founder of knight capital, his wife actually sat in on the recent robin hood lawsuit and dismissed all charges against citadel and robin hood and this scheme also benefited two sigma securities. So it seems like all of these, hedge funds and market makers are basically in bed with each other. You've got madoff security, citadel the shaw knight capital and two sigma, all working together with bank of america to mask trades that affect more than 16 million trades and 4 billion shares.

The bank also admitted to having told traders in its dark pool, which is a private venue, obviously where they expect protection from high-speed traders, so up to 30 of orders came from retail traders when the percentage was really closer to only 5. So that's obviously the potential inclusion of synthetic shorts that brought that 30 retail trade volume down to only 5 bank of america went to astonishing lengths to defraud its own institutional clients about who was seeing and filling their orders all to benefit. Bernie madoff ken griffin at citadel d, shaw, knight, capital and two sigma and all bank of america had to do here was pay a 42 million dollar fine, which is very, very small and more of just a business transaction cost. It just goes to show how corrupt the market really is at the moment, and hopefully somebody can do something about it.

That's why i think it's so important to get this message from charles gridante out there into the public more 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.