All right you beautiful people, have you made it to the end of this freaking playlist, the options market makers, the hedging, the unhedging, the gamma squeeze the perfect gamma squeeze series. Congratulations! Baby. It was probably a bunch of boring garbage, but i try to break down as simple as i can. If you haven't seen the first three videos, i think it is.

You know better suited to you to fully understand that whole process before we get into the perfect gamma squeeze. So you can kind of understand why i think this is a great gamma squeeze situation for any sort of stock right. So without further ado, look on the freaking trees, tutors baby. When we talk fast and don't skip class, i can buzz by saying that i'm not a financial advisor or expert still taking a salt, let's get into the video.

So now that you understand how hedging takes place, unhedging takes place, how market makers work the options market makers. Let's talk about the perfect game of squeeze scenario, i need to say this right now. This is financial advice. This is literally just my opinion.

This is what i think would contribute to the most bullish price. Actually, the most trend, continuation of momentum in any sort of stock right. Take that for what it is. So first have the perfect gamma squeeze.

You need a lot of active calls. You need a lot of open interest, a lot of call option activity, because this drives hedging, which we've talked about before right. I'm not gon na get that whole process go check out that video, if you need to see it so having an active call option is what leads to the setup for a gamma squeeze right. It's a setup process.

It's not something that happens over. You know in one day or overnight, it's a long process that leads to a gamma squeeze. You need the setup. You need the fundamental and technical setup to get that gamma squeeze.

So first is open interest in a lot of overall out the money call options right. Something that has a strike price above the current market value has not yet been hedged for. Next, you need supported underlying buying of that. You know specific security, the stock right.

You can't have a gamma squeeze without just by just having call options, because once you buy a call option, you can buy a hundred thousand call options at a hundred bucks. If the stocks running at 50, you did nothing to move the price action until those get hedged for right. It's gon na take those getting hedge forward for it to actually do something for the underlying stock right, so you need actual buying pressure into security. What does this mean right? So, if you're expecting to buy 70 strikes - and you know, nobody's gon na buy the stock, you think it's just gon na automatically run up there.

It's not gon na. Do anything right. People need to buy this stock. It needs to have that underlying overall bullish pressure.

You need to be beating the bears, the shorts, the the you know, the xyz and that sort of trade right. It needs people to have overall, more buying than selling that stock it needs. You know you need people to think it's going to go higher, so just buying calls will not contribute to price action. We cannot have that and any sort of security for a game is supposed to happen.

It needs buying pressure, there's no advance or bus. It just needs it, it needs needs, needs needs needs it. Third is this: you can create an endless feedback loop. If you have both of these first two conditions met.

You've got a lot of active call. Lock, you know, option activity. You've got a lot of open interest, followed by supported underlying buying of that overall stock and security. You can create this endless feedback loop until somebody decides they want to take profits.

They want to sell they're done with the game right. They've made it they've made their money they're done. They want to move on right. You need first buying right.

Buying pressure leads to call options running out the money to in the money causing the hedge effect the gamma squeeze effect, which can lead to a short squeeze. It can lead to shorts covering if this can create. You know, obviously, there's no direct order in this. It can be in either direction.

You can have a short squeeze which triggers you know, collapses, running out the money to end money which can lead to you know buying, which can lead to more short, squeezing it can go. You know endlessly until either a shorts run up b. There's no more call options to run through or see, there's no more buying right. You can create this feedback loop until it's literally the ceiling, but there's a big asterisk here.

It's dependent on a couple of things right: it's dependent on people not trying to take profits on stock, to have the perfect game, a squeeze that needs it needs people to want right. This is not financial advice. You do what you got to do. It needs people to continue to want to run the stock price up, they're, not satisfied with the overall price on any given security.

This leads to the final piece right. This is critically important, especially with a stock like amc, where you've got a huge amount of open interest on given security right, there's two scenarios in which you can actually halt momentum on a stock in well, actually, one scenario right and it's: if you end up selling That overall call option and not supporting it in a good way. So what's the best way to contribute to bullish price action, make sure that you're not contributing right? If you haven't seen my unh unhedging video make sure you go watch that you can a exercise, it exercise that call option, because that won't contribute to selling pressure. If you exercise it actually will contribute to buying pressure or b, you can sell that call option and buy more stock than options, and that piece is important right, because if you only buy out the money options after you, essentially, you know made your cash on that Premium right, what happens is it gets unhedged for and you actually contributed to selling pressure inadvertently, because market makers will unhedge their position right.

Go watch that on hedging video, i think it's an important one to watch if you're going to continue with this. I am not going to make this decision for you right. This is just an educational purpose. You this is your individual decision, sometimes there's scenarios where it's good to exercise, sometimes scenarios where it's good to sell and buy underlying stock at options more in stock than options.

If you want to see a continuation of an overall gamma squeeze right, but that is my scenario here. This is what i think is the best case scenario, because what happens if you sell your options and you only buy more options, is you created an advert selling pressure that market makers will unhedge positions? They will dump stock back into the market and your out the money options won't do if there's not underlying buying to support that overall move right. This is your own financial responsibility. If you want to exercise a stock - and you know it hits 60 bucks, that's your strike price and all of a sudden, it's trading at 65..

You think that's as high as it's going to go right and you want to just lock in those profits, because you don't want that risk then sell it. Just buy stock, there's way less risk with stock than there is options right. It's up to you, but if you do think it's gon na go higher, you can actually make more profit on the actual stock by paying up that premium and then also purchasing underlying stock. For, however, many options you've got and then riding the profits up from the underlying stock.

There's a couple of different ways: you can swing it and really make some actual decent freaking tasty attendees. This is my personal strategy. This is my opinion right. This is what i like to do.

I like to maintain an equal amount of stocking options at all times in my portfolio i like to have eighty percent of my overall position in any sort of stock, be you know, or overall security be stock, and i, like the other twenty percent, to be options. So, let's just say, hypothetically speaking, i had ten thousand dollars in an option trade right in my overall portfolio. What would this end up being ten thousand dollars? I'm not good at math, i'm so bad at math that'd be 50 grand right, 50 grand. So all of a sudden, this ten thousand dollars turns into i don't know a hundred thousand right.

I had a great options: trade and i've got a hundred thousand dollars. My overall portfolio just changed from 50 grand to 150 grand. I want to maintain that same 80 stock 20 options overall setup, so i'll, take that hundred thousand dollars and to put a lot of this into stock right because, what's 20 of 150 000 right 150k times 20 is thirty thousand dollars right. That means that now, all of a sudden, i've got thirty thousand dollars of options buying power to be able to do whatever i want with right so 30k and then the rest of that i put into stock.

So out of this hundred thousand dollars, i'm actually taking 70 000 of that and buying stock with it to help essentially offset some of the hedging that would take place if i was to sell those call option contracts right, that's my personal scenario, your job, your financial Responsibility is to come up with some sort of plan. Don't do this just because i did it right. You just need to come up with something have a plan, because failing to plan is planning to fail right. This is the perfect gamma squeeze scenario for any sort of stock right it just maybe maybe there's things you could change in some sort of way.

I don't know the exact ratio. That's awesome right! It's up to you to make that decision. I'm not here to do that for you. What i am here to do is tell you: these are the things that contribute to buying pressure.

These are the things that consider selling pressure right, there's a lot of different things that contribute to a gamma squeeze. If this is something that is actually learnable and employable in the stock market, if you yourself are trying to make more money right as an individual person, it's in your best interest to want to see you know, trend continuation, any sort of security. That's your decision to make this is the information i've laid out for you. That's the most that i can do.

That's what i've got for this video, so blah blah blah blah blah blah drop a like and subscribe. Everyone do my friends catch y'all, the next one light taps light, taps baby, tap, tap tap catch all the next one, much love and peace.