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Today I dive into naked short selling, primarily with the company ATER, and how I think this situation likely took place.
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Naked shorts, i'm not talking the nice kind of naked shorts, not the kind that uh fine, gentlemen would wear strolling around in their house as as should be done, but the malicious nefarious and illegal kind. There are many people out there, guys friends, family fellow gorillas, that uh would mock and essentially say look. This is a conspiracy theory. This is not something that happens.

It would take way too many parties to coordinate something like that, such as you can see right here with our favorite man on planet earth, charles gasparino, who says uh the father of the naked shorting conspiracy. Patrick byrne has been noticeably silent on it now and funnily enough. This is something i mentioned in yesterday's video, but i want to dive into this more so because it really is significant information more so than i think people realize uh. There's data that came out essentially saying look: this is a company that was in fact naked short soul.

This is the ceo right here uh. If i butcher his name, i apologize. I went to college for nutrition uh. We got a's, throwing our name on the test.

Right, it's pretty pretty straightforward stuff, but yeah yeah, oh off to a bad start, says here. Preliminary data on illegal naked shirts selling is in about 7 million shares as of october 15th. This is in addition to the 8.1 million shares, officially short, as reported by the nasdaq. Now, if you're a new viewer, you don't know what they can short selling is i'll walk you through the process and put in a very simple way, but essentially what this is saying is that 8.1 million shares were officially registered as short by the nasdaq there's.

An additional seven million that we're not accounted for, meaning that they should not be there and in and of itself that's pretty bad. That should not be something that exists for a prolonged period of time, and i wanted to take the opportunity to talk about it today, because that is uh important stuff to be able to mention so uh. What i want to talk about the most important thing is: how can something like this happen, because, when you think of naked short selling in and of itself, you might just think to yourself bad hedge fund, bad person right, they just decide screw this company. Let's dig it into the ground, but you can't be that straightforward as to sort of just create shares out of thin air and send them into the market shorted and expect that you're not going to get caught right.

Because a lot of this stuff is done via computers via algorithms and it's it's locked right. That sort of stuff can be found by investigating bodies such as the sec down the road. If there was an investigation to be done now, obviously the sec is kind of. I shouldn't say: they're not very proactive, more reactive than anything regarding this sort of situation, but think of this in a much larger sort of way.

I broke this down into sort of three categories here and i'm gon na be talking explicitly about uh shares options which are contracts that are written up by market makers, essentially liquidity or money providers within the stock market and then actual naked short selling in and of Itself so right here in this circle, what do you have right? This is a hypothetical stock. This in no way is a representation of anything. This is a theoretical sort of situation based on the things that present themselves in the stock market. Let's say you have 100 million share float.

What that essentially means is there's 100 million shares of total stock that exists on a day-to-day basis within the stock market, as long as the company does not add additional shares to that overall count. So if somebody was to own 100 million shares, they didn't sell a single one of those that mean there's nothing available to trade right with that being said, hypothetically speaking, let's say: retail owns 45 million shares, toots or institutions. The big boys, hedge funds, banks, whatever they own 25 million shares and then there's 25 million shares shorted into the market. I've added a small sliver right here for market makers as well, and i've been thinking of that a little bit more, but essentially think of this.

As uh their own internalized portfolio and holdings in that stock, anticipating things that could happen right, maybe a potential buyer - maybe a call option, runs in the money as i'm going to get into here in a little bit right. They just have their own liquidity in that, given security, so that they can handle that in any sort of way that they'd like to kind of this uh. This small circle over here is naked short selling, and why i mentioned earlier in the video, it's not super easy to get away with something like this is because you have to have some sort of reason behind uh naked shorting, a stock. If you're going to do it now, it's not technically illegal unless it's malicious or nefarious, and what i would define that as personally, is, if you do not have the supply.

For example, let's say that there is uh. You know you've got a market maker right here or a hedge fund who says okay uh. I i know that i have five million shares returning, but it's not until tomorrow. So what i'm going to do for now is naked short, 5 million shares into the market.

This being the market right here, anticipating that 5 million shares will come back and i will essentially wipe these naked shorts out of the market right. It's essentially an exchange, but the timeliness right hanging on to naked shorts for a prolonged period of time. That to me is nefarious because it identifies you had no intention the least bit of actually uh getting rid of those right and they circulate in the market and they can dilute stock price supply and demand. We can talk about that a little more, but i want to get into where i think the majority of the problem is and where the problem was for this specific security which was ader, and that is in derivatives now.

Why is this important right? Well, if you were to look at aider specifically, this is a lower float stock right. It's got about uh 30-ish million share float, as you can see right here by weeble. This is 29.3 million. Total share float for the stock and with that small of a float and with how heavily the stock was traded on how heavy the short interest was.

This stock had a 30 40 short interest uh. The last time that i checked it's very easy for things to get out of hand very quickly. If there's momentum and with that being said, there was heavy derivatives trading during this peak period right here when it ran out to about 19.90. So why is this important right? Why does it matter that uh there is heavy derivatives activity? Well, it's because this is a way where things can get out of hand for not only market makers but hedge funds as well.

So here's a hypothetical situation with a hypothetical stock there's 100 million share float and all 100 million shares are accounted for. These are traded on a day-to-day basis. That's how the stock decides what it wants to do on a given day, throwing derivatives all of a sudden right. Let's say that you have 300 000 total calls in the market, as is very possible with a stock that has such heavy derivatives activity, essentially, contracts that are written up by market makers.

Saying i think a stock is going to go up to this or i think a stock is going to go down to this put very simply right: 300. 000 worth of 300 000 contracts worth of calls equivalent to 30 million shares. One contract is worth 100 shares. You multiply 300 000 by 100.

You get 30 million. In the same way, we've got 100 000 total puts, or 10 million shares worth if those were to all run in the money. Now, here's a hypothetical situation right, let's say that the cap for these 300 000 total call option contracts is 10 right. Let's say it's 10 bucks right here and all of a sudden stock price goes way above that spike's up to 15..

What do you have all of a sudden right? You've got 300 000 total contracts or 30 million shares worth of contracts that are all in the money simultaneously, and this is a very rare occurrence. It's not something you see frequently, but it does happen. I've seen it in the last uh 10 11 months with a couple given stocks right, eight or being one of them, iron t being another amc, gamestop, very obvious bed bath and beyond blackberry nokia, right, there's, there's a ton of stocks in which this is very very Doable and possible to have happened now. The problem here is this: in this hypothetical situation: if a market maker has five million shares on hand, but 30 million shares all of a sudden run in the money, they have to prepare for the chance of all 300 000 of these contracts getting exercised, and they Don't have that on hand, they've got 5 million shares which can absolutely skyrocket the price up and in a situation where this can happen, you can have two sort of parties at fault.

Here. Market makers who wrote up these contracts in the first place have to hedge against these contracts right either. They they have to manage their exposure for the long and the short side, depending on which way the stock decides to go. So they can buy stock as well as short the stock, because they have to manage that risk and that exposure.

They play the game of break even right, they're trying to essentially manage volatility when that volatility comes to be so, market makers can write up naked shorted shares into the market if they don't have the supply saying look. This is a fair to deliver or look uh. We anticipate shares will return, so we can make this happen, and sometimes they just don't get delivered in the case of something like this right. This is my speculation.

Based on what i watched happen, i choked on my spit when the stock ran up to 19. Back here right back on september 13th, that's one opportunity: that's one option! Another one's this hedge funds can write up naked shorts and this is a less uh, less likely and more complicated sort of situation. Because the relationship between a hedge fund has to go through a market maker, at least to some extent or some sort of broker, which then goes to a market maker, so it has to go by a lot of people. You have to have a situation where there's multiple parties at fault, which ultimately comes back to market makers who oversee all these transactions and all the liquidity in the first place.

So what do i think caused this? What is what could have really caused that seven million shares sold short, which doesn't sound like a big deal right, but that is a huge deal. It's a huge deal because this company has a 30 million share, float 29 million, which means you're increasing the overall share. Count of this stock significantly nearly 30 percent, nearly a third which dilutes stock price. If you have more shares circulating in a float right, what ends up happening lowers the stock price.

It just does it's supply and demand if all of a sudden, you have this huge influx of supply right supply. This goes through the roof. Inversely demand will just go down. That's the relationship, because it's selling pressure that in and of itself, is selling pressure.

Think of the car market right think of the used car market right now. What do you see right? Car market uh, there's a shortage in terms of chip. There's a there's, a supply chain issue. You just see that there's really not a lot of opportunity to get new cars.

I i i can speak on this because my my roommate alpaca tried buying a subaru. It took him forever to get that new subaru right, whatever that causes used cars price to go through the roof, because there's limited supply in other markets, which increases demand in the same way with this right, increasing supply, you're gon na lower demand, it synthetically, lowers stock Price eighter got, i mean it just got anally fisted and it's right there in front of your faces, and i think this is one of many stocks where a situation like this happens to me, it's all hidden, it's all hidden in this, where all the malpractice takes Place is in unregulated derivatives markets, right market makers, options, market makers being able to write up more contracts than they really should, because they can write up an infinite amount of contracts if they so desire, as long as they think they can deliver on it and obviously - And so in some situations these guys are just making up as they go they're sitting there like. Oh, you know what you know what jim over here. He.

This looks like that. This looks like a gim me right, he's playing a freaking 20 call option on on a stock. That's at five bucks yeah. Why wouldn't i take that free premium and most of the time they're gon na hit that, but sometimes they do not.

Sometimes they get clapped, sometimes they get, they get woken up by being pissed on, and market makers get stuck in a situation where they have no choice. But to do things like this or like this, seven million shares right, it's crazy stuff, and these are things that retail investors and apes have been banging their head against the wall about, like literally months a year almost a year guys and it's there it's in front Of your faces, these are theories that have literally come true that naked short selling does take place. The process behind that, i think, is important to understand and the parties involved, i think, are also important to understand because there are a couple different ways that can happen, but i think the primary problem, where there's the most opportunity for friction and uh bad decision making Comes down to the guys at the top who handle the money market makers, they oversee transactions outside of clearinghouses. But that's that's entirely separate right.

I'm not going to get too much into that, but they oversee this stuff, which means they have to allow it to happen. And uh it's it's some wild stuff. So, what's the takeaway right speaking out against the stuff speaking about it, having these conversations and trying to discuss how this can happen in the first place, raises the opportunity for other people out there to see this and to affect change, is being able to recognize and Get the word out and make noise against stuff like this because, true, maybe you have no, no, no, no, no skin in the game with hater! No! No! No! No! No! No! No! I know i don't right, but it still affects people's lives. It affects the company.

It affects the people that work for the company. It affects the people who invested in the company. It's theft, it's straight up, theft, it's illegal! It's not right! It's up! I'm talking about it! It's a start! That's what i've got for you guys catch on the next one: much lovely taps, peace.

By Trey

30 thoughts on “Multimillion dollar market theft”
  1. Avataaar/Circle Created with python_avatars ajcook7777 says:

    They all are doing it, some get caught, most don't, the watchdogs who watch the watchdogs are getting heavily compensated as they lie and brush this criminality under the rug

  2. Avataaar/Circle Created with python_avatars Diamond Balls says:

    When this shit pops you decide if you are willing to take paper or diamonds, your choice. 🙌🏼💎

  3. Avataaar/Circle Created with python_avatars cumshot247 says:

    Would anyone like to buy AMC shares @ 30.00 each? I'd like to sell 10,000 shares by next weekend. I don't physically have these shares on hand but the SEC says it's okay…

  4. Avataaar/Circle Created with python_avatars Bry Monk says:

    Stock market is just another way for the rich to steal money from the poor

  5. Avataaar/Circle Created with python_avatars Dahlia Clothing Brand says:

    Currently 2K down with Ater. Getting burned bad. And its Worse when you know you shouldn’t be getting burned and that you’re actually being robbed via naked shorting 😅 Stock markets are fucked and they will probably capture crypto next

  6. Avataaar/Circle Created with python_avatars Janejohn Doe says:

    Naked shorting is in essence printing counterfeit shares.
    It's not just a supply and demand issue, or even dilution.
    If a market participant can print and sell arbitrary numbers, the real shares become worthless.
    It's a crime and should be treated as such, but the corrupt SEC turns a blind eye.

  7. Avataaar/Circle Created with python_avatars turtle4614 says:

    David vs Goliath. This ain't no biblical ish so in this tail Goliath tends to always win. I truly hope for a free and fair market for my daughter and son.

  8. Avataaar/Circle Created with python_avatars Nicholas says:

    I love you, man. You're entertaining and genuine while being real. Thanks for the info. It's infuriating.

  9. Avataaar/Circle Created with python_avatars Markiemark says:

    The Big D and Little Ds want me to sell. Well, they have to cover! 🤣

  10. Avataaar/Circle Created with python_avatars Aaronodactyl says:

    Tons of articles are coming out saying that people should sell, the stock is bearish, fundamentals are going to win out, etc. this is how you know shits about to hit the fan for these hedge fucks lol

  11. Avataaar/Circle Created with python_avatars Gorilla Trader says:

    Its important to realize that naked shorting is not illegal per se. The SEC allows it to keep buying/selling/supply/demand in line. Naked shorting to manipulate IS illegal.

  12. Avataaar/Circle Created with python_avatars Thomas Ridenour says:

    I suggest the everyone read Adam Smith's writings on capitalism. Hedge funds reject the concept of "Capitalism with a Conscience". For far too many people, gain is justified regardless of who gets hurt in the process. If you would maliciously short and destroy a company for your personal gain without any consideration of the employees, investors, communities where the company is located or any other moral reasons, would you sell drugs too? Would you traffic in slavery, prostitution, would you kill another human being for personal gain? Where do you draw the line. The "suits" with Ivy League MBA's who manipulate for personal gain regardless of the harm to others just to satisfy your personal gluttony and greed, then you are no different than a Mexican Drug cartel member. Your new Benz and tailor made suit is the only difference. I hope that your greed proves to be your undoing. That is why I am holding. I want to see the HF's and their minions screwed by the little guys….the APES.

  13. Avataaar/Circle Created with python_avatars Zguy says:

    With today's technology how come there is not an immediate share count tracker? It seems to me that their is no immediate counter simply to give big institutions the advantage of naked shorting when caught in a short squeeze scenario.

  14. Avataaar/Circle Created with python_avatars steve simile says:

    GOEV Another Heavily Shorted Stock I would like to hear about I've been following u 4 ever still doing a great job….I hold amc too

  15. Avataaar/Circle Created with python_avatars tinted braden says:

    This stock only moves when they cover a tad bit. I bought this morning cause all the hype and and should take off with everyone excited again and buying but nope dropping . It’s sickening . No other stock has the same hype yet they go up

  16. Avataaar/Circle Created with python_avatars Joe N says:

    Ater distracted everyone from AMC at $52 and killed the momentum. Our community needs to focus.

  17. Avataaar/Circle Created with python_avatars Shiba Inu says:

    Get up and physically protest on wall street. Time to lead Trey. Its time!

  18. Avataaar/Circle Created with python_avatars Shiba Inu says:

    The sec is probably part of the scheme sleeping in bed with the big dogs. THIS IS MAFIA MENTALITY. We gotta step up the game. Talk isnt gonna do shit This game being played way before some of us was born. Keeping people poor is their mission

  19. Avataaar/Circle Created with python_avatars Memoriam Magnitudine says:

    8.1million shares short… ~7 million not accounted for… that's the entire thing roughly…. Basically whatever you see, multiply the problem by 2 and that's what is NOT reporting… AMC+GME = Hedg R Fokt

  20. Avataaar/Circle Created with python_avatars Diamond Joe says:

    Thanks for reassuring me that the anal fisting is happening right in front of my face Trey.

  21. Avataaar/Circle Created with python_avatars Yar Yar says:

    Get interview with Yaniv. Seen some older interviews with him and i think it would be interesting 👍👍

  22. Avataaar/Circle Created with python_avatars Zen Lunatic says:

    The problem is that market makers CAN legally naked short the shit out of anything thing they want. Now, is this supposed to be legal? No. Why is it legal then? Because the way the law is written, they are given a blank check to naked short the fuck out of everything as long as many months or years down the road, if the sec decides ti audit them or investigate them, which is of course a very low chance, but even if they are investigated, they are actually just basically given the full benefit of the doubt, and as long as they do give a reason, ANY REASON, then that is taken at face value and ignored by the powers that be. They can legally naked shoet the god damn fuck out of everything they want, the law to prevent that is not only toothless, the law is a slobbering, toothless crackhead giving the market makers all gummer blowjobs at the same time. It’s like the poor crackhead is a-biting and a-chewin her ass off, trying to sink her teeth into those piece of shit market makers, and all she is doing is making the filthy fuckers cum all over the god damn place.

  23. Avataaar/Circle Created with python_avatars Smokin Ben says:

    The Fine by the SEC is smaller than the money they make therefore they DON"T care.

  24. Avataaar/Circle Created with python_avatars olfoogy says:

    lets conduct an experiment….lets see if we can wipe out the shorts in ATER ……wouldnt buying inthe money calls help cause a gamma crunch rather than out da money?? I am nailing eery reasonable stock that is heavy shorted in hopes of Apes eventually wiping out these hedge devils….we shall teach…they shall learn…but WE will learn more and faster

  25. Avataaar/Circle Created with python_avatars Fredick Lawman says:

    I’m so happy ☺️ my life has totally changed, I’ve been earning $18,000 returns from my $6,000 Investment every 13 days.

  26. Avataaar/Circle Created with python_avatars Andrew Bennett says:

    Why are we not pushing for this, it would confirm or deny our naked short thesis…. seems like something we should be doing

  27. Avataaar/Circle Created with python_avatars Caitlyn Alcorta says:

    Modern man is not the man who goes off to discover himself, his secrets, and his hidden truth; he is a man who tries to invest himself in something beneficial for the future

  28. Avataaar/Circle Created with python_avatars Dividend Portfolio says:

    JUST KEEP BUYING AMC. ITS SIMPLE. WE BUY. WE HOLD. WE SQEEZE THESE DIRTY HEGIES. WE HAVE WAITED SO LONG. ITS OUR TIME NOW….. 🌙🚀😂

  29. Avataaar/Circle Created with python_avatars YorkshireMan says:

    So, unless the law changes, what you are basically saying is retail is fucked. Hedgies and market makers will always win because they can just make shit up as they go. OCGN on 3/11/21 is a prime example. Vaccine approval by WHO, stock tanks by 30% 🤷‍♂️

  30. Avataaar/Circle Created with python_avatars Ken Griffin says:

    Citadel and co pissing me off . The SEC have too many people getting paid off .

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