All right, this video is gon na. Have a lot of things stated in it that maybe people don't agree with it's gon na have things stated in it that are probably gon na be controversial. Maybe uh, maybe you'll have a gut reaction of frustration towards me, but i want to make it perfectly clear that this is my real analysis, thoughts reaction to what i believe to be the case based on research. I want to give credit where credit's due this is coming from astro uh astros, throwing together a weapon of a video, it's called the short seller secret weapon, and it has brought me to this conclusion.

I've sat and i've pondered this for a good couple hours. I've thought really in depth about what this means uh in the grand scheme of things, and i think what you are witnessing in real time right now. You ever seen the movie, the big short you remember, the credit default swaps, the housing crisis, the credit crisis, all that sort of stuff happening right. I think you you, you backtrack to 2020., when stimulus checks went out, a lot of new money came into the stock market via retail.

I think he watched a transformation get thrown into the market and i'm gon na give you an analogy later in terms of what this means, but i think this can lead into what i would call the big squeeze theory. You hear the big uh, the big short. I think this would be the big squeeze. You could call it the big long, i guess, but the big squeeze.

That sounds a little cooler. We've got a lot to discuss, but the premise behind my theory today is going to be behind options and market makers. These two things: uh market makers, being the villain options being the tool they use to manipulate stocks via themselves, mind it. It's not you right, retail, uh.

I've said this before i'll say it again. I think retail control is about 10 of stock price movement on amc, gamestop and the majority of other meme stocks. I mean these are the two that i talked about, but i think this happens across the board. I'm going to show you my case behind why uh, but 90 of this 90 max payne uh options expiring worthless 90 of this is because of market makers and how they decide to move stocks via their own options.

Let's dive into this credit, where credit's due. Let me start off with astros video right. Astros video has far more detail behind everything that i'm going to be talking about here today. So if you'd like to know the nitty gritty the details behind everything, i'm discussing this is your spot.

I want to give it the most simplistic approach possible so that it's uh digestible, because i think i think these are some really wild concepts that can be slimmed down even further. We can. We can trim off some more fat to make this uh approachable for anybody right. I want to start off here with market makers and options, because if we want to believe the big squeeze theory and the fact that all stocks that that have options, including names like amc, gamestop, ci8 or bbig, prague, sprt, dwack fun.

All these stocks have been manipulated by market makers. We have to first understand how and why that would be possible. The assumption of my theory runs off the fact that maybe retail controls, if we're lucky 10 to 15 percent of stock price movement. What's the reasoning behind that, if you look at institutional ownership on a wide variety of different stocks, but just as an example, let's go to amc, we know that, as of the most recent information tied down by legally obligated statement of adam aaron, stating that 90 of The float excluding etfs, excluding institutional ownership, excluding any sort of short position, is owned by retail investors.

If we were to take that information. Look at how many current shares are shorted into the market, which is 108 million. We're gon na come over here and look at amc institutional ownership as it states right now, as it sits right now. You're gon na notice that about a third of this, as stated in astros, video is owned by institutions.

It comes out to about 36. 187 million shares a lot of these were bought back in june. He also states this in his video to expand this further. However, if we know that 36 percent is owned by institutions - and this is one million percent - relying on the fact that this data is up to date and uh is not behind - we know that 90 is owned by retail.

We know that uh. We know that roughly 108 million shares are shorted. This could also overlap with the institutionally owned shares. It's very possible.

It could be lending these out uh, but this doesn't even include the etfs right, etfs, also own a majority of the shares it is safe to assume. Then that if 36 is owned by institutions and 90, let's just take this right that these people are likely not what are moving the stock back and forth they're, not trading institutions like this. They typically don't trade. They don't trade large blocks of shares.

Uh in the form of commons. Commons is what you can think of as the actual physical stock right. What these guys will do if they want to trade, is utilize options, but the institutions aren't even really the bad guys right. We look back on melvin capital back during the gamestop debacle.

When the congressional hearing happened, melvin capital almost went over under, but to me they were a scapegoat. These guys weren't the real villains. Do the real villains actually ever get caught until the the end of the story? No, if you were to watch the story take place in real time, you know, melvin is, is sort of what i would say to be a fall man. I mean these guys were just fall mans were they were they doing bad stuff? I would imagine so i don't even think that robin hood's really the bad guy here yeah it's easy to point the finger at him because they did up they up bad, but at the end of the day they had a collateral issue and was it really a Collateral issue that uh they were able to manage, or was it was a plate that was kind of thrown on them by the bigger villain, the market maker? This is all theory, but i'm gon na back up some huge fact outside of this.

This is my personal opinion on these guys. I don't even think these guys are the bad, the bad guys, bad guys if you buy into the fact that 36 percent of this stock is owned by institutions, 90 is owned by retail. Etfs take up a chunk uh and you buy into the fact that hey in a low liquidity situation, when there's not a lot of shares available to to trade, uh and there's still trading taking place, it has to come from somewhere. I believe this comes from market makers.

Let me tell you exactly why i believe this comes from market makers via options for a very simple reason: options are traded every single day and they are a tool used to hedge against a core position or commons right. If i was just you know list off, and this is where i actually owe people an apology a year ago, i would scream into the void. I would scream into the void and say short ladder attacks. Are the problem uh naked short selling is the problem? Maybe maybe arbitrage is the problem, maybe it's maybe it's uh latency time.

Maybe we look at all these different things. We look at the weakness of the the mechanics behind the stock market, but to me these are all just branches they're, not the core problem. Am i wrong in saying that? No, no, no, not only spit, but is it the court problem, they're branches. The core problem to me is options.

Options are a legal tool in which market makers by regulation by the books have ways to bypass uh. What normal everyday plebs like you and i uh have to abide by the normal rules, they're able to get by this by utilizing options or massive leverage. You can probably see where i'm going already by saying that i think this is a repeat of 2008. In 2008, they had a credit crisis.

Now i personally believe it's a liquidity crisis with. That being said, i think, if you were to look at the way that options are hedged. What you get to witness happen in real time. Very simply put is market makers executing max payne theory.

For example, let's say that a stock is on a on a rampage and all of a sudden it starts consolidating right. It starts consolidating, and market makers want to push the stock price down we're gon na get into the reason why they choose to do that. Uh. Looking at some data looking at some facts, but let's just say, for whatever reason, this xyz stock with options options being huge here by the way they want to push this down right.

Well, what are they going to do? First things? First, i think they have a list of three different things. As astra puts in great detail in his video number one they're going to sell covered calls. This is bearish. Why is it bearish? It's because they personally is a covered call is a bet that the stock price is going to go down and if it stays beneath the designated stock price, for example.

If right here is ten dollars and i have a covered call for for for uh - let's just say eleven dollars right or maybe nine dollars say i have a covered call for nine dollars and the stock price at expiration date is at seven. I collect all that premium right. It expired worthless these guys who are long on that call. They don't get to collect they.

Don't they don't make any money? Their contract expired worthless. So you collect the premium say the premium is 50 bucks. You made yourself 50 bucks. Congratulations right: well, how are they gon na do that? First, they're, starting off with covered, calls bearish situation right.

It's a bearish signal. Secondly, they sell they short because get this options. Market makers and market makers in general, their job is to hedge. They, hedge positions, right.

So if they decide they want to go and sell covered calls or just bearish, they uh then, are going to watch what kind of comes in and comes out of their own book system. Let's say that all of a sudden, a huge covered call order comes in, they sell a bunch of calls which is bearish in nature uh and they have to hedge against that which push the stock price down right. Push the stock price down a little hair uh. They decide to sell short they sell because all of a sudden you've got more calls previously.

Maybe a 10 call the size that runs out the money they get to unhedge that right they get to sell uh, sell positions to the downside right they push. The stock price down. Boom comes down, meets their their desired price. Maybe it's seven dollars.

They've got their covered calls for ten dollars, whatever they get to collect that premium on a market maker, if they're playing big money, they can make hundreds of thousands millions of dollars, m's m's, m's, m's m's, big money, which brings me into the final piece short exempt Volume - this is something you've seen me discuss in great detail as of late. I do have an algorithm that actually combs through the finra regulated and reported short exempt volume that comes in every single day and the easiest way that i can explain to you. What short exam volume is is a synthetic share. If you want to talk about naked short selling, this is it.

This is the largest scale legal form legal. By the way, legal legal, legal short exempt volume is something that, by the books, these guys can do without any repercussions uh, as this is basically a self-regulated entity. This is a self-regulated practice uh they create synthetic shares. Now, what would be the reason? Well, let's just think about this: on paper, roona cell covered calls and all of a sudden, a whole bunch of different calls run out.

Uh, you know from in the money to out the money they have to go short, but there's a liquidity crunch. We have to come back to this right, there's not shares circulating around these guys. The majority are holding plus or minus, maybe five to ten percent retail two the institutions are holding two they're holding plus or minus, maybe five or ten percent right or they're gon na get their shares. We see that the the stock is trading on a day-to-day basis outside of major rips, maybe 30 million 40 million 50 million shares whatever right.

If all the shares are tied up where they get their shares, that's where this piece comes in right. They have to short. They have to hedge, but there's not any actual shares, there's a liquidity problem. They have to create them.

Synthetic shares bam. The the most recent and rampant and nasty version of this has been mullen, but this has happened with amc and gamestop. It's a it's. A very realistic thing it has happened, it has happened.

I think these are the three tools that market makers use to manipulate a stock. How do they choose to do this? How do they choose to push down or to push up i'm gon na get into this? In a little bit, but first i want to discuss uh the next piece on my agenda, which is the manipulation in and of itself, in order for them to decide the way that they want to manipulate a stock right using options as a tool, if you're tracking, So far, if you bought into the theory that the majority of meme stocks are retail owned, uh institutions own a large chunk of these and then from there uh market makers handle the rest of the chicken right. They take up the rest of the pie and i personally believe that far greater than 10 of the the actual volume, because there are short exempt shares and synthetic shares and phantom shares whatever you want to call and circulate around on a day-to-day basis, take place. They choose the direction based on something called historical volatility compared to in current implied volatility.

What is historical volatility? Let me just show you this check this out. There's a handy-dandy website over here, where you can look up the historical volatility of basically any stock. If i search up the historical volatility of amc, for example, historical implied volatility that'll make it a little bit easier. Historical implied volatility on amc and coming over here to uh market chameleon, you're gon na see uh the movement back and forth, there's even a better website where i won't have to pay for it for some dumb uh.

Let me come through this historical implied volatility. No thanks check this out you'll be able to see this historical volatility. What do you see here? Nine percent eight point: five percent eighteen percent - i'm just gon na, come back to the other website. You're, just gon na have to look at this kind of blurred out, but you're gon na see something which, which designates sort of the way that these stocks have moved in the past right.

You can see the historical volatility moving up and down up and down huge spikes. You'll notice that there's a big spike right around that june mark you'll notice uh. There is another spike up here as of just recently, and this is essentially just telling you compared to previous implied volatility uh, where the we, the the current volatility stacks right, so i'll just draw this out for you as an example. If i want to draw this out and show you what historical volatility would look like, historical volatility would be, if we know we had a huge pump in june, we had a huge pump in january and we had just recently had a huge pump in march right.

What do you think the implied volatility is going to do implied volatility being a metric that basically analyzes the pricing of options and derivatives you're going to notice that they spiked here historical implied volatility spiked here spiked here? What market makers are looking for in order to pick a direction is which side of the trade calls or puts is cheaper right makes sense? You want to buy whatever's cheaper if a call is cheaper, market makers are going to lean towards moving stock. That way, ports are cheaper, they're, going to lean on moving the stock. That way, right right now, where we are, if i had to take a stab at it, is market makers can see that puts have a cheaper implied volatility compared to historical implied volatility or hiv and they're leaning towards that direction. So they want to compare historical volatility.

Historical implied volatility to current volatility, whichever side of the trade is cheaper, they move it right now, it'd be puts, puts it moved down a little bit. You can see this as of today right. Look at this volume is moving down for some god. Forsaken reason coming off of a huge momentum breakout, as i mentioned many times, i don't think that retail's really moving the stock.

I think that market makers are what move the stock back and forth back and forth back and forth every single day right for buying into that, and you look at sort of the way in the mechanics behind this you're going to notice that this is the case. They pick whichever direction goes, then. We come back to uh our previous theory, which is this. If it was to the downside they sell covered, calls they'd, then hedge against that and then, if they don't have the liquidity step, three is optional: they have short exempt volume.

Right opposite direction will be the exact opposite thing if they think that the stock price is a much better long position because of historical volatility compared to implied volatility, whatever uh they're going to go, uh sell, puts they're gon na sell puts which is bullish. Maybe it's a put for uh 95. As of just recently, that's something that we did see happen. You saw, puts getting sold for 95.

This is bullish. Stock price starts going up right. Then they start buying. We do the exact opposite of what we just mentioned.

Instead of selling or shorting, they go buy. What happens if they can't buy? What happens if there's no shares you go to step three exempt volume you create shares, you create the liquidity. Now, having explained you this three-step process, is it starting to sound like anything? Is it starting to sound like a tin, foil hat theory it might, it might sound like a tinfoil hat theory, except in astros videos. He shows you go watch this please unusual whales proves to it's, not because you can actually watch this in real time happen in real time in absolute real time.

It's insane options are the tool in which market makers manipulate stock, here's examples of when retail lost control. D-Wack, i remember this vividly. I remember this vividly. I remember that dwack had announced they were going to have derivatives right, went from 10 up to 175 bucks, all of a sudden.

They had options and everyone was jacked. They thought to themselves. Yes, i made, i made almost 2 000 unjust stock. So now i can imagine uh you know hooray.

I can make maybe 2 000 uh twenty thousand percent. I don't know uh on the continuation, but you were wrong see. The reason that this is movable in the first place is because market makers weren't, manipulating it a thousand percent every time. There's a stock that catches, momentum and then options are introduced.

You're, lo, you lost control. You're gon na instantly lose control because of two things: they're able to introduce new supply, which decreases demand and they're able to gain control over the situation. Another example is cei cei. They introduced options.

What happened? Dump, retail lost control options are market makers way of control, a thousand percent. I would describe it like this in an analogy and a perfect analogy: think of the entire market as being just a huge sheet of music right. Here's, the music. You got notes here, here's a note.

Here's a note and the market makers are just playing the the the sith lord symphony right, they're, just playing along having a grand old time. Well, what happens when you wipe out one bar of music you're gon na have a couple minutes of uh, maybe a couple seconds of bad music right right: it's not gon na, not gon na sound, quite right, but what happens if you lose all the sheet music? What happens if they don't have the formula to fall? What happens if they don't have the script? Well, then, you've got chaos. Then you've got a loss of market maker control. Here's some examples: proc sprt, bkkt, ater, gamestop, amc, the greatest example being gamestop gamestop went from five dollars, two dollars to a nearly 500.

to say this was not because of options would be a mistake, a grand mistake. There was surely some shorts that covered here without a shadow of a doubt. It went from 200 and some percent short interest to uh, where it currently sits today, according to or text ad or tex, was registering that previous 200 plus short interest right. They didn't all cover, they didn't all cover.

What this was is a loss of control from market makers. What happened is retail new money, pile drived into options? There was so much degeneracy, so many people on wall street bets just plowing money as much. They sold the farm, they sold their kids, they sold their cat, they sold their sex toys, they sold their, they sold their everything their bed, whatever it was all gone that dumped it into options. Well, what happens you overwhelmed the music, the music got.

It got absolutely massacred now. I think that a lot of that was lucky. It was surely to some extent, organized and smartly put together or whatever, whatever whatever you can look at whatever you want, but in a grand way, those guys secretly found the formula to massacring to execution of market makers and it was to burn them to the sheet Music, they burned it, they lost control. This is the greatest example that i think exists in present time that market makers lost absolute control over the way that a stock goes.

What happened? Well, if you don't have the music that lets you play, you don't have the sheet music, that that allows you to see what how how many covered calls you have to sell uh how many stocks you know commons. You have to sell to be able to write short exam volume, whatever you get screwed another example sprt. I remember that this, at one point in time had three times the float in the money and cost meaning, if that, if there was 50 million total shares, there was the equivalent of 150 million shares this being the float by the way there was 150 million total Shares that were in the money on calls meaning market majors had an obligation for three times the float that presently existed. What does it sound like to you a liquidity crisis? It sounds like they made a bad decision very similar to 2008 and cdos uh.

In terms of credit, in terms of liquidity, in terms of what they actually could withstand and could withhold in terms of supply and demand right, they lost control of this. How is that possible options? Options, options, options, options, options every single one of these was it because of options ater. What happened here same exact thing same thing, happened. Options ran way past the actual float in the money.

Maybe it was two times. Maybe it was three times. Maybe it was four times market makers sheet music got burned, they couldn't keep up, they couldn't print enough synthetic shares out of short exempt volume to keep up with uh what they already had planned out in their beautiful sith ward symphony right and they lost control, but They got it back, they got it back in game, stop they got it back in cei. They got it back in d whack.

They got it back in what is presently now g-r-e-e, but previously was sprt. They got it back in bkkt. They got it back in bbig; they got it back in amc. They got it back in all these stocks.

Why? Why is this the case now that we know if you buy into everything that i've stated out so far, the three that i have so far right? If you buy into all of this, what's the grand takeaway so that options, market makers are always able to recover their music until they can't what happened in 2008. Why do i think this is similar to 2008 right in 2008, you had a credit crisis. If you want to look back historically at 2008 and look at cdos and really what uh, what took place here, i'm going to pull this up for you just briefly. A cdo is a collateralized debt obligation.

It's what contributed greatly to the credit crisis. Essentially, there was fraudulence in a very similar way to the stock market right now with market makers in terms of liquidity, market makers compared to banks back in the day, and i i'm willing to bet you money. The banks have a hand in this presently right now. Today, uh we're able to syntheticate create uh and fake their way to whatever they wanted go.

Watch the movie, the big short. It's worth your time. I think i i really really do think it is. But back then you see this in a collateralized debt obligation.

Banks collected assets and created a structure, distribute the profits for those assets to cdo investors via credit. Well, what is a derivative? It's a leveraging tool, meaning that you can make more money for putting up less money. Well, how are you able to accomplish that? It's because market makers have the ability to leverage and deleverage and leverage and deleverage and leverage and deleverage. So if they have this ability in this tool and they're abusing it, what does it sound like? It sounds like music playing uh until it stops playing all together.

This is the situation in which the the music was playing and it got halted, got got burned. There was no more paper left to print, they couldn't, they couldn't create more sheet music, and i think that situation is going to happen again. My theory, my statement, my thoughts is that you are currently in a new liquidity crisis. What caused this new money? You look at all the new money that came to the stock market in 2020, with stimulus checks and retail money and uh the the millions and billions of dollars that came from from from retail institutions, banks and market makers.

These guys haven't really known what to do. I mean genuinely, i think this is a situation where uh retail has actually done some damage in a good way, and what i mean by this is the market is slowly evolving and the way that it's going to evolve, i personally believe, is being decided right now. It's either going to be a huge transferring of wealth from retail to banks, or retail, is going to get to rewrite the game in complete time, and what this comes down to to me is who has the control control versus lack of control? Right personally, i believe that market makers have moments moments in time in which they lose control, and i personally also believe that this is because retail is only playing one side of the coin here we think too narrowly now. This is drastically different, drastically drastically drastically different than than telling.

Let me dive into my theory first. Actually, i think, there's two scenarios here, two ways that this ends right scenario. One marker maker scenario periodic squeezes not necessarily wrong, not necessarily bad you're gon na have moments in time. Uh.

I remember saying back in march of 2021 that i think amc is gon na squeeze like tesla. I think you apply that to everything. Gamestop bbig uh g-r-e-e bed, bath and beyond blackberry, uh cei all these meme stocks. All of these are gon na.

Do the exact same thing, they're gon na go through huge reps, where they lose momentary control. The market maker system and they're gon na go through periods of long drawn out. Slow bleeds, i think, that's very possible. I think we're coming up on a really nice one to two month rip for small, mid cap companies.

I think you're gon na see a squeeze across the market, a million percent, but i think, there's a better situation here. It's the retail situation, and this is the hard truth. This is where, at the beginning of the video i think people are gon na mock me. They're gon na ridicule me they're, gon na be angry.

They're gon na feel all sorts of things, but to be frank with you, i'd rather tell you the truth. What the books say makes the most sense. I think the retail situation, the retail scenario where people win is very simple. You play the market maker game, we're not going to beat these guys.

You cannot, unless you are able to create or present more money to the stock market than presently exists in market maker hands, which is trillions of dollars. You can't beat them. Retail doesn't move these stocks, they don't we don't we don't it's mathematically, not possible. We don't.

We don't move the stock market makers. Do institutions, do banks, do these guys move the stock we hold the stock. The float is ours, it's locked, so who's moving the thing. It's not us.

It's not us we're not moving. This thing we're not! This comes down to market makers, banks, institutions and all the fraudulents that i personally believe is happening right. So how do you beat them? You play their game. I personally think that if you wanted to end this in a month, you want to have your huge massive rally.

You play the market maker game. What does that mean? It means if market makers are loading, and this is drastically different than selling your stock right in no way shape or form. Am i telling you to sell stock, but let's present an if this than that scenario right. Let me present you this.

If the stock price historical volatility compared to compared to current implied volatility, uh, you see cheaper, puts you're likely gon na see, downside market makers are loading up. The stock price starts going down they're trying to make money on the downside right. How do you play their game? You pile drive them to the downside, while also holding your stock. This is important.

This is a hedge. This is not going short on your company. This is hedging against the inevitable downfall. If that is to happen right and i'm not saying that right now, amc stock is doomed to go down to a dollar and that's not good.

It's got doom to go down to 510, whatever what i'm saying is you're going to have periods of time of just by the books by standard by the way, this thing moves huge rips, huge dips, huge valleys peaks valley, peak valley. This is going to repeat over and over and over the way that i think tesla currently squeeze squeezes they're gon na see that you're gon na see you're gon na see these massive waves and rallies. You know so i think the way to win is to hedge. When market makers are pushing it down, you play the down, while also holding your stock.

You, hedge, against your position. What happens when you exit that put at the bottom, you made your money right. Market makers are going to start leaning towards the upside. Why? Because nobody's playing the upside, which means that the implied volatility is going to go down, which means that the options contracts are going to be cheaper they're going to push it up.

You have all this extra money that you made from puts, while also holding your stock you're, not selling your stock you're holding right. If that's what you'd like to do, of course, i'm not a financial advisor whatever you have all that extra money you either buy stock or you buy calls it goes up. You beat them at their game. What is the way to permanently burn market maker music? There's two: you take it into your own hands or the last step scene.

If you look back in 2008, the sec never got involved, never once they were tipped off many many many many times, people saying hey. Look, this is up, didn't do a thing. What it came down to was an actual criminal charge, big boys federal crime, not not the sec, big boys right. The gears of justice grind very slow, but they do in fact grind while stepping is possible, but i don't think it'll be the sec option.

One retail plays the game, i think that's genuinely what it's gon na take. I think that there isn't we have the right idea right. I think retail has the entire right idea. I think the thesis behind buy and hold is a huge reason why these guys are in such a shitty boat.

I don't think the premise behind people uh loving a stock. They decide to buy a stock individually, as is, and they hold it no matter. What comes you know? If that's what you want to do, i'm not telling you to buy, i'm not telling you to sell you do what you got to do right, but if this is the thesis that i don't think this should change, because just looking at it with a completely unbiased Perspective, this is what has created the liquidity crisis. This is what allowed us to be able to look back and say.

Yep. These market makers are pretty crooked, they're, pretty bad people. The problem is, you are only trying to move this thing up and you're only playing calls when you want to play calls and it's going up, make that cash make it make it. But when this stock price is going down, it looks like it's going to continue down right make that cash.

This is how you burn market makers. I really do genuinely think that i do, i think, that's the solution. I think this is a lot to digest and there's another video that i'd like to throw together regarding this theory regarding these thoughts in a new video, i expect uh. You know, i think that some of you are probably gon na, be frustrated, you're, gon na, say trey.

If you lost your mind, uh and so be it. I'm taking this from an unbiased respect and i'm taking this out of a good heart, and i think those who've watched me for a long time know that when i mean when i when i say something i mean it, i wouldn't make this video without some real Thought construed and put together here and at the very least i think this is interesting if i have any final messages, any final thoughts, i'm not telling you what to do. I'm not telling you to buy to sell to play calls to play puts, but i do think it's time for retail to think outside the box. We can only bang our head against the door so long until it's time to try something new, and i think this is a genuine solution.

It's time to evolve and that's what i've got for this video. Let me know what you think. I i openly welcome good discourse, positive discourse, uh, i'd love to have a conversation about this. I'm gon na read the comments very closely you.

Let me know what you think and i'll be making another video soon catch, y'all later much love.