Welcome back to the channel everyone today, i want to tell you how the amt squeeze is absolutely still on. I also want to talk about some mathematics behind it and exactly how the squeeze is likely to play out so stay tuned and let's make some money, and now i want to dive straight in with the key information. So a lot of you at the moment are very concerned about the current amc dip and how this impacts the squeeze and whether the squeeze is still going to play out or even happen. I basically want to explain why it isn't much of a concern and what's gon na happen, so here we've got an actual candle chart showing the volkswagen squeeze from 2008.

As you can see, obviously, volkswagen begun to trade up. It then dipped and then it ripped for the short squeeze. Obviously, volkswagen began to run up, but because of the wider market recession towards the back end of 2008, volkswagen crashed along with the wider market, but because those shorts were still there and never covered volkswagen did then short squeeze. So this is very, very similar to amc trading along at two dollars running up to twenty dollars, pulling back to eight dollars running up again to seventy dollars, and then it could theoretically crash all the way back down to two dollars before starting that rip phase and The amc squeeze so even though amc is currently dipping, it absolutely does not interrupt or cancel the amc squeeze.

If anything, it makes it even more akin to the volkswagen squeeze from 2008. Here's that all too familiar chart from the financial times. Obviously, again, you can see volkswagen running up and then it dipped pretty much 100 back to where it started before the squeeze. As some other prime examples, amazon fell from a hundred and ten dollars to eleven dollars so lost ninety percent of its stock value.

Before going to three thousand dollars, bitcoin dropped from twenty thousand dollars to four thousand dollars before going to sixty 000 and now 69 000 tesla also went from 300 to 180 before going to 2 000. Yes, you could argue, these aren't necessarily short squeeze plays specifically bitcoin and amazon, because i guess tesla is kind of a short squeeze play, but not the same as amc. So, even though these aren't short squeeze plays, you can still see that during a wider market recession like specifically with amazon, even though stocks dip and lose the majority of their value, they do still recover substantially and amc will still squeeze. If you didn't already know muma currently giving away up to 17 500 in free stocks, when you sign up open your account and make your first deposit now, some of you might say: well, i never really get that lucky with free stock.

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If you can deposit two thousand dollars, you may ask: why will amc still squeeze, though? Obviously, the shorts still haven't covered, the shorts are still about to get liquidated as the wider market crashes and therefore the shorts are going to get forced to cover their short positions, but on top of that, still to this day, amc is still one of the most Talked about stocks in the entire market and has a massively bullish flow here we can see on fidelity. There is 9600 buy orders to only 3 000 sell orders, that's more bullish than pretty much any other stock in the top 10 other than facebook or meta platforms. You can also see the active number of reddit users on the amc stock forum has gone up substantially over the last few days. Therefore, the height is indeed returning back to amc.

Now you may ask, though, tom, how do you know the wider market is crashing and is likely to crash? Well, i wanted to direct you to the bno newsroom twitter and some of the recent tweets they put out yesterday. So you've got the official cdc statement of the first omicron case in the us. You've also got poland reporting the biggest one day increase since april. 2Nd you've also got denmark also reporting the biggest one-day increase as well, but not only that, but you've also got portugal reporting the biggest one day increase and france as well.

We've also got germany there as well south korea, new york and the wider us as well. All reporting the biggest one day increases and therefore it's now looking increasingly more likely that the world is about to enter another lockdown. Yet again, what's that going to do to the u.s stock market, well think back to what happened in march of 2020, but what's different this time compared to back in march, is obviously the shorts have doubled down, tripled down and quadrupled down on amc and have become Substantially more leveraged over the last year and a half all of those hedge funds are reporting all-time highs in margin, usage and loan uptakes. So therefore, because they're so much more heavily leveraged, there's a much greater chance of liquidation and therefore a lot more money to lose.

On the way down in the wider market, obviously, if the wider market loses more and more and more of its value, that further increases the chance of other hedge funds also being liquidated as well. We also know that a number of those large institutions that are currently shorting amc are some of the most heavily geared hedge funds and institutions in the entire market and are therefore most likely to be liquidated. Now some of you have asked tom, who are those hedge funds that are shorting amc and why are they so likely to be liquidated? I'm going to touch on that in a second, but first i wanted to quickly look at the vix chart. Obviously, i've explained the bix so many times on this channel before, but the vix is effectively a volatility tracker that kind of tracks, market sentiment and fear towards the end of last week we saw it run up to 28 points.

It then dipped back down to 22, but yesterday it crossed the 31 mark and effectively crossed that 30 barrier over the last year. The only time the vix has been higher than 30 was back on the 25th of january or the 27th of january. Obviously, just before the gamestop run-up over the last two years, the only other times the vix has been above 30 or been above 40 is obviously back in march when the pandemic was announced and the wider market crashed significantly, even though the vix begun dipping in the Early hours of this morning, it soon returned on its trend, upwards and many stocks that were green in the pre-market this morning or the aftermarket yesterday are now dipping back red. So he could potentially be having another red day in the market and another day of the vix trending even higher.

So who are the institutions that are currently shorting amc? Obviously short positions? Don't have to be reported, but put positions do so. We can go to the 13 f's and look at which institutions and which hedge funds are currently holding put options on amc. So here we can see some of the institutions that have some of the largest put positions in amc. We've got jane street citadel 683 capital management, altai and a number of others here that you've probably heard of as well i'll scroll slowly through the list.

In case you wanted to look at any specific funds here now. I also wanted to explain the maths and the numbers behind why amc will still squeeze. Obviously, yesterday i spoke quite a bit about the white cough accumulation theory and how amc is setting up for a massive springboard, but what are the actual numbers behind it and how do options come into play? For example, well, the kilted traders made a thread saying how a dip can turn into a rip explained. One of the reasons the rip after a dip is so violent is that during the dip, nearly all of the calls end up getting de-hedged for and the puts get hedged for.

The rip can obviously cause this to reverse and can cause wider market makers to panic and cause them to re-hedge very very quickly. For those of you that don't know you, hedge, a sold, call by buying shares equal to the chance. You think it will end in the money. 60.

Chance means 60 shares. 30. Chance means 30 shares, as the price drops. So does the expected chance of the call ending up in the money and as such you de-hedge and sell off some of those shares to hedge.

A sold put you hold the cash relative to the chance, it will end in the money and the amount you'd have to pay out. If the put was exercised. If you had to pay two hundred dollars for a put, that has a 25 chance to end in the money, you'd hold 50 in cash. If that increases to 75 percent, you'd therefore need to hold 150 another 100.

Therefore, you may have to sell off some stocks to hedge that per option and have more cash available as the price falls and your sold put becomes more likely to end in the money. That means you need to hold more cash. What's the quickest way of getting more cash by selling stuff, namely shares in the given stock? If you have them or in other stocks, if you don't, and if you don't have either, you could always raise cash quickly by shorting a stock. If the market is trending downwards, but obviously that's super super risky and stupid, thankfully type a hedge fund managers are super risk adverse and would never do stupid things like shorting stocks with high leverage actually never mind i'll, see myself out on that one.

So when a price is in free fall, it leads to this massive de-hedging of calls and hedging of puts to get obviously more cash for those puts which adds more selling pressure onto the stock, because by de-hedging those calls you're selling those stock. All that stock, the price will continue to fall until those market makers don't have any calls left to de-hedge or any more puts left to hedge for, and this is the stage we're at right now. Amc currently only has 447 call options in the money and 142 000 options out of the money it has. 69 000 puts in the money and 13 000 puts out the money, so still some more puts to hedge for, but largely obviously, all of the calls have been de-hedged and when this reverses, when those hedge funds that are currently highly leveraged, that are also shorting amc Get liquidated a sudden uptick in price can cause a reverse of this action.

We know from the downtick there's enough movement to hedge from one strike into the other, but given the remaining time that has decreased, the upward movement becomes even more violent because obviously the reverse side of the trade comes a lot quicker than the first side of the Trade that then leads us onto three compounding factors that add up on the upswing. Firstly, we have loading up when the price crashes like this and there's strong evidence of reversal being possible. Large firms and retail investors will begin to load up on cheap, cheap call options which in retail's case may have previously been too expensive to buy and that's exactly what's happening at the moment. Many many apes out there are currently buying the dip on amc buying, actual amc shares, but also call options with a further expiry, maybe in january or february 2022, for example, another way to hedge, a sold or bought poor call is to sell or buy the opposite.

This exacerbates the situation due to leverage on the way down. It makes the movement more violent, while also acting as a loading up phase and then, when it moves back up, it adds additional buying pressure and obviously, on top of that, you've then got fomo and high frequency trading as the price violently corrects, either up or down, And suppresses on the rip, the fomo crowd will join and jump in, for example, when amc passes 72 dollars, you're going to get tons and tons of fomo for that 100 break and from there on upwards as well and alongside the fomo investors, you've also got the High frequency trading firms that will jump in trying to take advantage of both sides and the wider spreads. Obviously, if they can trade with high frequencies and take advantage of those larger and increasing spreads, they can make more and more money now. This may not necessarily be the dip before the rip right now on thursday, the 2nd of december, but it's been the first proper dip where it could set off this gamma squeeze or liquidity crunch rocket boost since the end of may now.

Finally, i also wanted to quickly touch on some breaking news from luperin. They tweeted saying how many of you would be interested in coming to a meet-up at the loopering headquarters in the metaverse. So not only are loot print working on an nft platform with gamestop, but they're, also working on a metaverse platform as well. So not only is loot print going to be a crypto with insanely low or zero gas fees.

Not only are they going to have an nft marketplace, but they're also going to have a metaverse as well. I do think that if luprin can roll out this nft marketplace and create a metaverse in a near and not too distant future, i do think that lootprint could potentially steal 10x to 100x from its current position. Guys be sure to. Let me know down in the comments below why you think that amt squeeze is absolutely still on and whether you do think it is still on as well.

Now, if you want to get all of my new stock and crypto picks or if you want some help with amc and gamestop, be sure to check out the patreon and the private discord in the link below and become part of the team, and as always guys, If you enjoyed this video be sure to check out some of my others, alternatively, subscribe the channel and ding that notification bell, because that way, you'll be alerted. When i upload a new video cheers.