You want to know how these uh, these big market makers and hedge funds are able to manipulate price to convince you guys that this thing is done. It's over the uh. The outcome has already been decided. Look no further than the options chain.

Everything is there in the options chain for us to behold because, as we all know, uh market makers, hedge funds, institutions, all these big boys in the mainstream media, they're very clever in the way that they uh they try to disguise they blame retail. They say you guys are just flat out selling, which i'm sure some retail are right. There's everybody that has their own specific circumstance. They have their own things they got to deal with, but nonetheless the majority of the problem is that amc is one of the most heavily traded derivatives in the entire us stock market, and i'm going to go over that here with you just briefly, but first, as Always welcome to trace trades uh, i'd like to remind you that i'm not a financial 599 financial advice.

Please take what i said i'll do what you got to do right, let's get into this video. Take a look at this. Take a look at the puts chain. This is the puts open interest, open interest, meaning uh the current contracts that are available at that specific strike price right so for the 20 strike, for example, there's 34 715 total contracts that have been written up for that exact strike right.

Let's go over to the calls: what do you have for that? 20 strike. 26. 658. Total contracts.

Well, i've talked about this briefly on my on my channel before, but in case you do not understand how hedging and unhedging works, which is the idea of a gamma squeeze uh. This is kind of what moves stocks drastically to the up or to the downside, something. That's very hotly talked about, typically, is a gamma squeeze up right. You have out the money calls essentially, let's say that right now, this the price is trading.

18 bucks and you've got a bunch of strikes at 20 and those run in the money. Well, what would you kind of see take place? Uh we'll show you here briefly right, 20 strikes all of a sudden start running in the money. You're gon na see this bam huge, huge, drastic increase, we'll just pretend these are the 20 strikes. You see that huge bump, if you didn't have these 20 strikes, the stock, would move a little more organically.

That is a gamma squeeze. This huge movement right here would be considered a gamma squeeze. However, you can't see the exact same thing happen to the downside, especially with puts that run in the money and calls that run back out the money. So what this process is called is unhedging.

Essentially, if a market maker has bought stock because a specific number of call option, contracts have run in the money, uh and then ran out the money or even worse, they bought in the money and then run out the money. They will. Let go of that stock. Essentially, that stock being preserved as uh equity that can be used to exercise contracts if they so desire to do so.

And what do you see here right, you see? The 20 strike has a crap ton of open interest. 26 000. The puts have 34 000 total open interest. So how did the stock have this massive 8.4 down day to day? Well, you have the combination of a gap fill sort of in the process of being had now right now right, i could go all the way down here to the low 17s high 16s, as you can see here by this green box.

The top the bottom of this cap filler would actually be about 16.50, or so you saw an unhedging of calls and a hedging of puts, and i know that can be kind of confusing right, but to be put very simply, it just means that whoever was playing Put contracts right, whether it be institutions, whether it be market makers trying to balance out their books, whether it be retail uh, which is very unlikely all right. What you saw here is a gain of control in the short term by the big boys, and i've talked about this briefly before right. When we talk about manipulation and corruption, it's not as simple as we just scream out naked short selling. Naked short selling is a fairly easy thing to crack down on.

If it's exacerbated, if you have the the plethora of hundreds of millions of shares, just circulating at all times, red flag, red flag, red flag red flag, the sec is most likely going to jump on this sort of stuff unless they're just looking the other way and Who the knows right? I'm not gary gensler and this guy seems to be just lost in the absolute chicken sauce man. I i don't know what he's up to, but nonetheless, this is what i think. Truly. You know it contributes to the price action we've been seeing.

Lately call strikes run out the money this cause is going to draw down stock price, put strikes, run in the money. This will also draw down stock price and it causes this super volatile move, like you saw today, 20 line right here. Right breaks beneath that 20 line, huge selloff that was hedging and unhedging by market makers who are holding a specific amount of stock. I've said this before i'll, say it again between january and june.

I think this is a stock that was primarily controlled and run by retail. The price action was run by retail dollars. Right now, the buying pressure - or, i should say selling pressure - is being run by algorithms, by institutions and by market makers. Now, what does this kind of mean right? What's the obstacle that you're trying to overcome here? Well, you can't control puts if you're not playing puts.

You can't really do much about those running in the money, but what you can do is uh sort of control, the controllable factors - and i mentioned this in yesterday's video uh, but didn't really give you any more to run off of you - can look at the open Interest on these 145 dollar strikes: 211 000. It's actually gone up since yesterday's video uh. Where could you have gotten better right now? Obviously, 145 uh dollar strikes have been building up slowly over time over time over time. Right they've been accruing since maybe august september october november december, but a lot of these would have been put to better use down here in this 1920, 21.

22, 23. Even up to the 25 dollar range, where you can get a little bit of that gamma ramp. If you do want to play options and the most important thing, my friends is, if you don't understand options, the first lesson. The first piece is education and i've got a plethora of videos about options.

I can actually link them uh up here, we'll do that we'll link the videos up here in case you'd like to learn about how options work that way, you can kind of get the know-how. If you don't understand options, stock right options are gasoline. They cannot be lit without a match and the match is buying stock. You need buying pressure and what we've seen here is two exacerbating factors.

You have selling pressure deriving from the the villain right, the market makers, the institutions, the the big c uh, the big v. All these big big blahs, whatever you want to call them right, just controlling the stock price, on a low volume sort of basis, which indicates to me a couple things. Retail is primarily holding because we see that the dollar cost average is up here in this 42 range. We see the volume is drastically lower than it was back here in these days when there was a very large loading zone right, the second piece being that there's just selling pressure.

The institutions are primarily moving this thing right now with shorting right, 19-ish percent short interest based on what we know and otherwise derivatives. This is where we want to see some transparency and some change. How can you avoid these sort of problems right? What would be sort of uh the the desired outcome here? So you can avoid these sort of things if you can have an unlimited supply of contracts, be traded such as you can now, because the argument is supply and demand right if you've got if you've got demand for this many contracts. Well, the market maker's job is to fulfill them.

You should not be able to do this. This is how they hide nefarious up activity on a day-to-day-to-day basis. Right and people. Don't even think about it.

Half the time there are. There are smart retail investors out there. People have dug into the options chains, you understand how messed up they are, who understand that they can abuse settlement times, uh how they can abuse, hiding short interests and hiding specific dollar signs they're pumping into the stock right. But there are a lot who do not know that and the big problem is that there's not enough regulation, there's not enough uh, there's not enough of a bar right in terms of how much of these contracts can be traded, puts calls in the money out the Money both of these are used by market makers and institutions to push this down, and that's what you're watching happen here today, 20 strike right.

Large amount of options were pinned on that exact dollar sign, and it's no surprise. It's no secret that, after it broke under 20 dollars, not only is it a psychological game right, it's also a derivatives game. This is where a lot of this action's coming from so moral of the story here right. How will we wrap up this video if you're? Looking at this right now, if you're looking at the stock price, if you're looking at it down here in the 18s, this brings me back to my video about fundamental value.

I truly do believe that the fundamental value of amc uh, if you're, if you're, basing this on forward earnings right the idea that tesla trades on essentially the company is fundamentally improving, you're, investing in future value, you're investing in a movie theater chain that will be evolved Over time, i think the risk gets lower and lower, as this continues to drop down underneath 20.. I mentioned this before i'll say it again. I think that this, the odds of this maintaining a value under 20 for a significant amount of time is slim to none. I really do believe that i do.

I think that you may see a blip down here in the short term, down to 17, even possibly high 16 right uh, but i think that's a blip. I really do i, i think you're overdue, for a pull back up. I think that the spy the index, especially iwm, which moves in tandem with amc right now amc being a very heavy piece of iwm, which is the russell 2000. It's made up of this uh mid cap index uh decent chunk of it.

By the way amc is being pinned down by algorithms, by institutions uh by the big boy money moving this thing around right, it can make you feel hopeless. It can make you feel, like you, can't control the situation, but you can control what you do with your dollars right and ultimately, what that comes down to is risk management, having a plan and learning the system, because at the end of the day we are sitting At a table of blackjack and the dealer knows every single hand before it gets laid on the table and what you're trying to do is beat the dealer and until we're not playing at a casino anymore, just have to learn to beat the dealer. That's the game that we're up against. We are here to change this system and stop this sort of from happening.

That's the problem. This stuff is the problem right. It's a goofy situation, my friends, that's what i've got for this video yeah. I suppose i suppose that's about it.

I was trying to think i thought i had something else on my mind, but i'm running like an hour of sleep, so uh, that's what i've got i'll catch you on the next one, much lovely taps, peace.