Today, i want to talk about whether the buy button will be removed once again during the next amc run up or alternatively, whether the amc squeeze will happen too fast for these market makers to react, causing a number of hedge fund and market maker bankruptcies. So stay tuned and let's make some money, and i want to dive straight in with the information so today i want to start by talking about why the buy button was actually removed. Did these trading platforms remove the buy button for their benefit or for the benefit of the market makers? Did these trading platforms knowingly and willingly take away the buy button for their benefit, or were they forced into it by the market makers being told their trades? Wouldn't? Be rooted to the market and being told their trades wouldn't be cleared, so nfa advisors have put together this thread on the buy button removal. On the 28th of january 2021, there were a number of changes due to ongoing market volatility.

Robin hood weeble and a number of other trading platforms announced that, due to ongoing market volatility, the following securities are currently set to position. Closing only providing a list of 13 separate securities during the robin hood lawsuit phase, robin hood announced that they were told by the dtcc to post more collateral. Due to the current ongoing volatility in the market. They said it was their decision to restrict a number of stocks to position closing only as they didn't have the cash available to post.

This required dtcc collateral, robin hood and a number of other brokers made no attempt to collect the collateral required and they also made no attempt to keep the buy button alive and to not restrict trading. However, it's important to note that robin hood actually had zero exposure in four tickers that they restricted trading on including ctrm, nakd, sndl and tr. The majority of trades being executed by robin hood on the 28th of january and the days leading up to the 28th were mostly in amc and gamestop, and a few other stocks like bbbyy and nok and actually on the 20th of january. Robin hood had zero exposure to those four tickets highlighted and therefore had to post zero collateral in relation to these four stocks.

Therefore, on these four stocks, robin hood had zero need to take away the buy button because they didn't have to post a single penny of collateral in relation to these four stocks. However, internalizing market makers such as citadel actually had huge exposure to these exact same four stocks, along with all of the others that were restricted and therefore, even though internalizing market makers like citadel, had to restrict trading on all 13 stocks. Robin hood only really needed to restrict the trading on 10 of these stocks, if not potentially many less, and therefore it seems like taking away the buy button, wasn't actually the responsibility or wasn't actually caused by these trading platforms like robin hood, requiring to post collateral. I believe they were forced into it by these internalizing market makers.

If robin hood didn't take away the buy button on all of these 13 stocks, their internalizing market maker, that routes their trade to the stock exchange or that they're selling their order flow to could have simply outright refused to route their trade to the market. Robin hood as a platform would have effectively had to close their doors if they couldn't root any single, buy order or any single sell order in any security to the market. That'd be like me, asking you to call a local shop or to call a friend but taking your mobile, taking out the sim card and taking out the battery and then handing it to you and expecting you to still make that same. Call.

If robinhood isn't connected to the market by their internalizing market maker, they couldn't root any single trade for any single security, regardless if it was a buy or a sell order, and therefore robin hood and these other trading platforms were effectively at the mercy of these internalizing Market makers now nfa advisors also asks and says any guesses out there as to who aided in the buy button. Removal selection he's then listed a number of internalizing market makers and a number of different trading platforms that had massive exposure in both amc and gamestop. Now a number of names that will seem very very familiar are names such as citadel securities, g1 execution services, jane street capital, robin hood securities, obviously two sigma securities, ubs virtue and wolverine securities as well. You may have also seen this recent article from frankness, saying that bank of america has actually increased their short position in amc and guys.

If you didn't already know, you can currently get 10 free shares worth up to 25 000 and a free share of lucid guaranteed. On top of that, when you sign up to moomoo right now use the link in the description below moomer and futu also do not accept payment for order flow in moomoo's latest terms and conditions. Mu have stated they don't accept payment for order flow. They don't receive payment for said order flow and they don't benefit whatsoever from selling client order flow or from lending out client stocks.

Not only did mumu not accept payment for order flow, but mumu also don't lend out your securities to other institutions. We know that bank of america are the prime broker for citadel securities and therefore it may also seem like these market makers are receiving external help or external influence from prime brokers and from major banks. This is bank of america, and jp morgan continue to bet against amc. Despite the repercussions it says.

Like hedge funds, banks have also been under much public scrutiny for betting short in the market. Regulators have obviously subpoenaed some of the largest banks and hedge funds. After investigating communications between the two parties earlier this year - and it says, bank of america have actually increased their short bets against amc in may. According to the latest fintel reports, now we know that rkgos use swaps to hide their true exposure in certain stocks.

Both long exposure and short exposure, it wouldn't surprise me if citadel is using the exact same tools, the exact same swaps, to hide their true short exposure in amc, and it wouldn't surprise me if the counterparty or the party lending money to citadel for these swaps is None other than bank of america citadel's prime broker, obviously citadel heavily leverages their trades with a ratio of eight to one, therefore they're using eight times the actual equity they have to invest or to short stocks or basically for their overall portfolio. Therefore, citadel has, to borrow seven times their portfolio size in cash, from somebody to use as margin collateral or to effectively use his margin, and therefore it wouldn't surprise me if bank of america is the bank lending all of this money for citadel or potentially taking the Other side of their trades, therefore, bank of america have a vested interest in citadel success and therefore it doesn't surprise me to also see bank of america increasing their amc short positions, basically doing anything they possibly can to help citadel to stay afloat. Now you may have also recently seen that a number of different trading platforms - td, ameritrade, robin hood and also, i believe, fidelity as well - took away the buy button on rdbx options. William received an email from td ameritrade saying thank you for reaching out today.

Options, trading for rdbx has been restricted to closing transactions only due to their pending merger, with chicken soup for the soul. But, as hang loose says since, when depending mergers require the buy button to be taken away for options trading and it's interesting, that called options can no longer be opened, but they can only be closed out. Surely, if there is a pending merger, both opening and the closing of options should be suspended, typically in the stock market, when breaking news is about to be announced, the entire market for that stock is halted for half an hour, maybe an hour or maybe the day Before the news is announced, that means both the buying and the selling is restricted and effectively. The entire market is halted pending the announcement, but it also seems weird to restrict the buying and the selling for a potential possible merger that hasn't even yet been confirmed, but even more weird to restrict the buying.

Only. I believe td, ameritrade and other trading platforms subsequently changed their mind and said. The options should have never really been introduced on the stock in the first place, but as true demon tweeted, he said if you want to see how brokers clearing houses, exchanges and the sec protect retail investors, look no further than rdbx's option chain where the ooc or Brokers arbitrarily decided the options were no longer valid and took away the buy button. You can see that for the 10 and above call options, there's thousands and thousands of options in open interest that effectively expired worthless due to the buy button being taken away once again and as boss blunts has said, calls for redbox or rdbx equaled.

503 percent of the free flow, therefore, td, ameritrade pulled away the buy button on call contracts because calls caused gamma squeezes. They would have destroyed short hedge funds and brokers and the underlying market makers, because the calls equaled 539 percent of the float. If these market makers had to hedge for all of these call options, they would have had to purchase the entire float five times over, causing a squeeze and potentially bankrupting the market maker. Therefore, considering the buy button has recently been removed on another stock like rdbx, it wouldn't surprise me if they try to remove the buy button once again when amc runs up next.

However, i think it's also important to think about the number of hedge funds that have already gone bankrupt and the number of hedge funds that will go bankrupt when amc runs up again as stock savior tweeted archaegos is gone tiger. Global is down 50 60 or even 70 percent, and will be going soon. White square capital is gone, melvin capital is being liquidated, anchorage capital gone thai, born tiger, legatus, evergrande or evergrande glacier capital, three arrows fantasia tiger asia, impala, quant macro and adg. Capital management is only a small list of the funds that have recently been liquidated or closed their overall fund and therefore, when the wider market crashes and amc squeezes, there will be tons more funds that end up being liquidated all at the same time, if a number Of these funds that are shorting, amc get liquidated.

At the same time, amc will effectively squeeze instantaneously. All of these hedge funds will be forced to buy back their amc short positions all at the same time, effectively buying out the entire amc or the book. If these hedge funds are liquidated at the same time, amc will almost instantaneously squeeze from say, 13 per share, all the way up to say 3 000 per share or wherever the current sell orders in the current amc order. Book actually end right now.

Many of us can set sell orders for amc at 200 or 300 per share. Some of us using different brokers, maybe would set sell orders at 2, 000 or 3 000 per share when these hedge funds all get liquidated at the same time, they'll be forced to buy back hundreds of millions of amc shares at the same time effectively buying up Every single amc share: that's currently for sale, regardless of the price, and this is why i think these market makers won't have enough time to react when amc next runs up, when that first wave of liquidations hits amc will instantaneously squeeze from whatever price it is currently Trading at at that time to multiple thousands of dollars per share when the entire order book is wiped out. Obviously, at that point after the first wave of liquidations, as i've said before on the channel, i do expect a second wave of liquidations and also a third wave of liquidations. On top of that that effectively escaped the first wave of those liquidations.

The second wave of liquidations will be those larger funds that had a higher liquidation point and the third wave of liquidations will be those funds acting illegally and trying to hide their synthetic shares. I don't think it's possible for these market makers to react before the first wave of hedge funds actually end up being liquidated and amc is pushed into the multiple thousands of dollars per share position. However, at that point the market makers may try and step in again instantaneously to restrict the buy button or to restrict the sell button and basically haul all trading to ensure that amc doesn't run up any higher. At this point, it basically wouldn't surprise me what they try and do to stop the trading for amc.

If anything, i would be surprised to not see them interact in some way or to intervene in some way to try and take away the buy button and potentially even take away the sell button. However, i do think before these market makers end up getting involved. Amc will squeeze during that first wave of liquidations when a number of hedge funds go bankrupt and go under during the coming market crash, as i spoke about in my video earlier. If credit suite do go under the market, will instantaneously drop five or ten percent in a singular day, causing that first wave of hedge fund liquidations and when that first wave does hit amc will squeeze and it will push amc into that four digit per share region And at that point i do expect market makers to try and get involved, also guys be sure to.

Let me know what you think down in the comments below also be sure to ding that notification bell, because that way you'll be alerted. When i upload a new video cheers.