Free Wyckoffs@FreeWyckoffs
Alright $AMC retail shareholders. Let's see if you have the brainpower to focus and actually read this Dark Pool Manipulation /Short Ladder Attack/ Options 101 educational explanation. Comments are off and this is just educational. I do not promote the buying or selling of anything at all - but this is something to know, as all of this education is available online and in the literature.
John Hempton, a naked short seller hiding in the shadows of the dark pools, wants you to buy $AMC so those shares are PFOF routed to dark pools where short sellers can use technically "legal" naked short selling (since the trade is not done in lit markets) and thus can short ladder attack - coordinated trades between parties to artificially drop the stock price.
So, if you want to trap short-sellers who are manipulating the stock in Dark Pools (a place originally created to prevent immediate price increase or drops by large institutional investors until they are fully in or out of a position) - you stop buying the stock. (Woah, Woah, Woah - keep reading.)
Trades don't get matching buy orders. FTDs build up.
Initially, price drops due to lack of demand (read the bottoms of this post before you lose your marbles).
But then...
FTDs pile up, Reg SHO kicks in.
Threshold Securities List.
The reason $AMC is not going up is because you don't see the true buying pressure coming in at all. Like the rest of the market, it is heavily being manipulated.
So yeah - you stop buying the commons yourself.
You hold your existing shares. I don't know if you remember, but Trey tried to tell you that beforehand.
You stop giving them fuel to short.
BUT - Now, to the derivatives market, which you all lack the knowledge in:
How do you stop price from falling without "demand" coming in from retail orders purchasing "commons"?
Well - you make the two big bad guys duke it out:
The Market Maker becomes the counterparty.
At-The-Money and SLIGHTLY Out-The-Money call options have something called a "high delta". The higher the delta, the more the Market Makers have to buy the underlying common shares from the market as a hedge. If these guys don't get their orders matched on lit markets - that becomes a bit of an issue, unlike retail.
Here's the kicker: if retail purchases these ATM call options - MM's would be heavily short those call options since they are selling them to you. It exposes the MM's to be theoretically infinite risk if the stock price goes up.
Market Makers job is to remain delta-neutral and collect premium/spread.
To neutralize this risk of being short all those call options, they buy common shares from the market. That's right - Market Makers buying massive amounts of the underlying to hedge their BID calls.
What happens when MM's buy massive amounts of an underlying stock? (1 call option = 100 shares of a stock). I'll let you do the math here...
Enter: "Gamma Ramp"
MM's buying pressure far exceeds individual retail buy orders. The stock price rises. Those ATM options move deeper ITM (in the money). The delta of those "ITM" call contracts increase.
As the delta increases, MM's continue to buy MORE shares since they are underhedged due to the rising "Gamma". This is the rate of change of the delta.
If this continues and more ATM call contracts become ITM call contracts - the turn becomes something called a:
Gamma Squeeze (Hi 2021).
1) Supply is effectively zero (retail holds)
2) Market Makers desperate to buy shares to delta hedging (to reduce gamma exposure)
3) Stock price skyrockets because MM's blindly bid up the price to try to find sellers.
4) Naked Short Sellers can't ladder attack anymore - the price is rising too quickly.
Short Sellers - worst case scenario - the rising stock price obliterates their margin requirements. Margin Calls. The shorts cannot deposit more cash? The brokers will forcefully liquidate their positions.
So, you naked short sellers (the bad actors, stealing from retail investors), I would say this...
Don't overstay your welcome.
Because eventually, one day... those "smooth brained apes" learn to build a fire.