Welcome back to the channel everyone today i and one of my subscribers may have just figured out a way that we can beat the hedges at their own games. Now we may be a little bit too smooth-brained to have figured out if there's any way out of this for the hedges. So i would massively appreciate if you can share this video with some of the more wrinkled brained apes out there. I've also got some crazy updates as well for the amc stock, so stay tuned and let's make some money, but guys before i dive into the video.

I just want to give a massive shout out to cavaci de fogo who's just joined the highest tier of the patreon and the private discord and is now a silverback gorilla. I've also just updated the patreon with a few additional benefits. So if you haven't already i'd, really consider joining the patreon and the private discord linked in the description below and becoming part of the team, you also get automatically entered into a giveaway to win 600 in cash on the 28th of august. So, as always guys be sure to drop a like down below subscribe to the channel and ding that notification bell, if you haven't already so that you don't miss another video, just like this one, and now i want to dive straight in with the key information before I discuss our strategy that could potentially beat the hedges at their own game.

I was doing my daily search of the 13s and stumbled across something absolutely ridiculous. As of yesterday the 13th of august, there were some massive updates to institutional holdings of amc stock. First, up on our list is vanguard, adding an additional 6.9 million shares to their already very large position. They now own 44 million shares of amc worth around 2.5 billion dollars as at the end of june.

Now, what's really interesting here is that both blackrock and vanguard have added to their positions at the end of june. Therefore, even though amc ran up to 72 dollars and then started to come down during june, both blackrock and vanguard c amc going higher than 72 dollars. Now you might jump to a conclusion and say well: blackrock and vanguard have a lot of tracker funds that track different indexes and therefore have certain percentage weightings of stocks. Therefore, they can't sell their amc unless that percentage waiting goes down, which it isn't it's been going up, but i think it's also important to note.

This 44 million shares is vanguard's personal holdings, not what it holds in the vanguard. Etfs, that's counted separately same with blackrock. The 30 million shares that they own is their personal holdings and not part of the ishares etfs. Those holdings are on top they're if vanguard and blackrock wanted.

They could have at any point sold their 44 million shares at 77, a share and got around two and a half billion dollars of cash and put it into a different stock. But they didn't they diamond handed and continued to hold because they see amc going higher. But vanguard aren't the only institution that added to their position, we've also got geode capital management that added an additional 1.45 million shares, bringing their total holdings to 7.67 million shares. Another firm that also didn't sell their shares at 72 or 77 a share and continue to hold, but again vanguard, blackrock and geode still aren't the only ones.

You've also got renaissance technologies, adding an additional 1.296 million shares to bring their total to 1.8 million shares and also the northern trust corporation. Adding an additional 500 000 shares to bring their total to 4.2 million shares, but unbelievably we're still not done. We've also got simplex trading, adding 1.485 million shares and 4.36 million call options on amc. This is absolutely incredible that more and more and more institutions are adding to their position in amc and still holding it at the end of june.

After the amc, price had fallen down from 72 and 77 now some of you might jump to a conclusion and say well. This is probably a bad thing, because these institutions are just going to sell amc early on the way up and kill the squeeze they're going to halt it prematurely. But i think what you've got to remember is how institutions behave our institutions very generous and sell things very cheaply, only making pennies a profit or are institutions very greedy and get every single penny that they possibly can. So is an institution going to see amc running up to 100 and 200 and be like wow? This thing could go to a thousand dollars a share or ten thousand dollars a share or even higher.

We better sell it now, a hundred dollars and only make our few pennies a profit, because we need to be generous and let other people share in all the fun no they're going to be greedy and hang on to it as long as they possibly can and Sell it right at the very top now onto my fairly smooth brand theory of how we can beat the hedges at their own game, and it includes odd lot trades. So what are odd lot trades? It's effectively an order lot of less than 100 shares, which is usually indicative of retail order flow. This ape went on to provide this tidbit about the odd lot theory from investopedia in his original post. The odd lot theory is a technical analysis hypothesis, based on the assumption that the small individual investor is usually wrong and the individual investors are more likely to generate odd lot sales.

Therefore, if odd lot, sales are up and small investors are selling a stock. It's probably a good time to buy and when odd lot purchases are up, it may indicate a good time to sell, while this ape theorized that the odd lots were not hitting the tape. As a result, i don't think he knew just how spot on he was, namely that finra itself has confirmed that odd lot. Trades do not have any influence on the price and here's the extract from finra.

That says, reports of odd lot transactions that are marked for publication or as tape illegible are publicly disseminated by finra and the securities information processes as applicable. However, odd lot transactions do not update the high the low or the last sale price for the security. He then goes on to investigate and figures out that, on a daily basis, there's about 10 of amc volume, that's traded as odd lots and therefore is not impacted on the amc price according to an sec research paper on alternative trading systems. These odd lots are not required to be reported on the consolidated tape.

It also excludes trades of less than 100 shares, which are generally not required to be reported to the consolidated tape, which allows us to make a more precise comparison of trade sizes between the two samples for trades of at least 100 shares. But hedges are also combining this with payment for order flow they're getting those odd lot by transactions and putting them either through the dark pool or through the exchanges not impacting the price, but they're also gathering up the sell orders and grouping them into round lots of 100 shares and putting them through the lit exchange as a round lot, so it does impact the price. So i and james my subscriber we're thinking there must be a way around this that we can beat the hedges at their own games. So therefore, what would happen if one larger ape or many larger apes, that trade using fidelity and therefore can run transactions direct to the new york stock exchange? What would happen if they brought a round lot of 100 shares and therefore impacted the price and then sold back 99 of those shares not impacting the lit exchange price? They could then do this over and over and over again, buying 100 shares impacting the price selling 99 of those not impacting the price buying.

Another 100 shares impacting the price selling 99 of those again not impacting the price. Now, i'm definitely not encouraging many many apes to come together and buy a hundred shares and impact the price and then sell 99 of those shares not impacting the price and doing it over and over and over again, because i'm pretty sure that'll be market manipulation. As i'm trying to somehow form a group to manipulate the market, so that's definitely not what i'm suggesting, but it would be in line with finra's rules and therefore must serve some kind of merit. When you buy a hundred shares, it's a round lot transaction and therefore it must be right, so it impacts on the price.

But when you sell 99 shares it's an oddly transaction, so you're probably wrong, so they don't impact on the price. Surely this way the amc price would go up and it would not come down when you sell the shares because odd lock transactions don't impact the exchange price. However, though, i may be looking into this in too much of a smooth brained way - and i may have got something wrong or may have overlooked something that the hedges could exploit in a way to push the amc stock lower. So i think we need some more wrinkled brain apes looking at this to figure out if there's any way out of it for the hedges.

I also wanted to recap you on two great catalysts that we've got coming up in the near future. We will know that amc is going to be added to the msci equity index on august 31st. There are rumors that this will entail a buying of a huge block of 25 million shares of amc around that date, so we could see a spike in its price at that time. This is a fairly good catalyst, as it means that the index is going to have to buy 25 million amc shares on the open market, but what would be better is if this catalyst was somehow combined with another catalyst.

One day later again, i mentioned it in my video yesterday, this guy discussed the impact of phase 5 of uncleared margin rules for over-the-counter derivatives which kicks in on september, the 1st 2021. There will be an upsurge in the volume of margin calls and an increase in the need for third-party custodians to safe keep collateral. This umr rule basically means that institutions that hold derivative positions in amc are going to have to stump up a lot more collateral. Many of these firms are probably currently very low on cash and very high in risky put options and derivatives.

This umr also contains a variable margin requirement as well. There's the initial margin requirement and also a variable margin requirement, that's depending on the amc price. Therefore, as the amc price rises, these institutions are going to have to stump up more collateral. So therefore, on august 31st, if we have a boost in the amc price, that means on september, 1st they're going to have to stump up even more collateral than they were already expecting.

As the dtcc's executive director pointed out, it could cause an upsurge in the volume of margin calls and an increase in the need for third-party custodians to safe, keep even more collateral. And i think the important thing to remember is that when one domino falls all the dominoes will fall when one smaller hedge fund gets liquidated, it will bump up the amc price even more potentially causing further liquidations and other larger funds to also be liquidated guys. If you want to pick up some shares in amc, but you haven't even yet signed up to a trading platform, be sure to check out the link down in the description below to moomoo, to get four free shares worth up to three thousand three hundred and fifty Dollars, moomoo have also got an excellent trading platform with an earnings calendar option order flow, super up-to-date news, very easy to use platform and loads of other key bits of information and, if you're from the uk be sure to sign up with free trade again linked in The description below to get some free shares 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.

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