I did post a video earlier today giving my initial thoughts and opinions on all of this, and i was really excited don’t get me wrong. I still am, but i wanted to make another video that hopefully you get to watch before market opens tomorrow and then before this weekend, because i think it’s going to contain everything you need to know about the amc squeeze where i see this going from here, and I also got a lot of questions as to where you should buy or where you should sell i’m, not a financial advisor and this isn’t financial advice it’s just my opinion but i’m going to answer everything to the best of my abilities. You’Re going to want to watch this entire video what’s, going on guys welcome back to the channel. Now, if you like content like this, you want to see more in the future. Please be sure to hit that subscribe button that really helps support the channel in the number one best way. Also, if you want to be able to trade, pre and post market definitely be sure to sign up for weeble that’ll, be the top link in my description box, down below, where they’re going to give you two free stocks for starting a new account and depositing a Hundred dollars – and it also helps support the channel guys. I don’t want to make this intro long, so let’s get right into it. So i have a lot to unpack so i’m gon na go through everything as quickly as i can, while still doing the best job that i can explaining it so amc after consolidating for a while at five dollars and fifty cents finally shot up.
Obviously, that’s really exciting. We talked about five dollars and fifty cents being the bottom. I didn’t see it going below there. I saw that there was the potential for it to run up at any moment in time and that’s. Why i held and that’s why i made all the videos – and i got a lot of people telling me that it was dead and that it was over and i needed to stop making videos on it but i’m very happy. I stuck with my conviction because today we are up 60 now gamestop more of the same. I don’t personally own shares in gamestop, but it is one that i’m covering, because if you look, the amc and gme price action is very similar and we’ll go on that. A little bit more down the line, but first i want to talk about this short shares available. We’Ve been covering this for amc for some time now, 2 million short shares available. That number has gone up over the past few days, which leads me to believe that shorts are covering their position because they don’t want to be involved in this craziness. That happened with gamestop when it ran up all the way to 340 and beyond so that’s. What that tells me again at one point earlier this week, this was below a million short shares available now that it’s up to two million, i believe that shorts have covered, but nowhere near to the degree that there are shorted positions.
If that makes sense. The reason i say that is because, if we look over here on marketwatch, amc is currently the highest shorted stock with respect to their float. This is as of february 12th, but you can see. The float is 57 million shares and 84 of which is being shorted. Now, as you know, when we talk about a short squeeze, obviously you want there to be a high high percent of the float being shorted, because that means there are a lot of shorter positions and that will lend itself very very well to a short squeeze again. 84 is a very, very high number, so that is definitely something to keep in mind. Now, before we get to a short squeeze with the case of gamestop, we got to a gamma squeeze. Well, what is a gamma suite, so, first of all, let’s understand the options market really quick. So the reason that options are so important is because they are expiring. On friday, so that is in two days now, if we go here as you can see from the 5.50 strike price, all the way to the 10 strike price we’re, seeing high high volumes of options that, like crazy, crazy numbers, twenty four thousand twenty six thousand forty One thousand thirty thousand thirty thousand. These are hundreds of thousands of open option contracts. Now, if people sell these open option contracts tomorrow morning and make profit great, they they made profit that won’t necessarily lend itself to the gamma squeeze.
What will is if and when? All of these options expire in the money then what’s going to happen is these people will have the right to get the shares at the strike price. So let’s say i’m, someone that had the 5.50 strike price uh option contract for amc. Well, then, tomorrow, whenever the option expires, not tomorrow, excuse me friday. Whenever the option expires, i will have the option, hence the name, to be able to cash in that option. Contract for 100 shares at 5 and 50 cents. Now this would make sense if the price is like, where it’s at now at 11 or more i’m, making six dollars on every single one of those stocks which, when you do that times, 100 that’s 600. So you made 600 in profit on the shares for every option contract that you own now. The issue is this: creates a lot of buying pressure when people cash in their options, contracts for shares, and so you have hundreds of thousands. I mean you have to think every single one of these options. Contracts represent a hundred shares, so you have to multiply it by a hundred to get the number of shares and that creates buying pressure which buying pressure is essentially there’s. More buy orders being put in than sell orders, so essentially what’s happening is there’s, so much buying going on that the price just goes up. That’S simple supply and demand. The more demand there is the higher the price will go.
So that is why, if we are able to maintain a price of like 10 or 11 going into the weekend, i believe we will see a gamma squeeze next week, even if we hit lower numbers such as eight or nine. I just we need to keep this price above seven or eight dollars, or something like that, something in this range. The price needs to stay above, to have a good chance at a gamma squeeze. Now, in the case of gamestop, it was the gamma squeeze. That was the precursor to the short squeeze, because you have all of this buying pressure and then shorts are like wow i’m out of a lot of money right now i want to cover my position. Let me buy back more, which creates even more buying pressure, which is how you get from a hundred dollars to literally four hundred dollars in like a few days now, i do want to draw a commonality between the graphs that i want to talk about, as you Can see there was a run up in game, stop of a lot. There was a 100 run up, and then there was that sell off in consolidation. Now the time frame doesn’t match up exactly it’s like plus or minus a few days, but this ran up a lot. Amc ran up a lot and then there’s the sell off in the consolidation we’ve been talking about this consolidation forever, so many people were worried and in all my videos i was like this is risky.
It definitely is risky, but i don’t see this thing going below five dollars and fifty cents a share. I just don’t, i think we’ve consolidated and i think now we’re starting to have this breakout again two days before the options close. So the important things to take away from this video are if amc’s price can stay above 10 11 going into the weekend. That will be monumental to having a gamma squeeze in the next week, which will, where we’ll see this price potentially run up beyond. All of our wildest imaginations now again, there is a lot of risk here and there has always been a lot of risk, but especially now that we’re back up at nine dollars. This is no longer where i view this as the floor. I think we can go below nine dollars if we go on the day here. In fact, i’ll pull up this chart; instead, you can see, is there’s, run ups and then there’s sell offs and then there’s run ups and then pull backs and run ups and pull backs. So that answers another question. I’Ve gotten a lot of can i buy, and personally i will be looking to buy more. I definitely have held all of my positions, but i will be looking to buy more on one of these pullbacks. There are several different prices that i would be looking to get in at. I think anything under 10. I may be looking to get in at anything even closer to 9.
50. Something like that. There are definitely multiple different levels of support here that are important to watch. For now, because i already own stock, i may actually be looking to buy options and get part of all of this options. Craziness now, please please. Please know that this is incredibly risky and i’m doing this with the money i’ve made off of my amc shares. So i’m, essentially playing with house money, but then, if this crashes i’m really not so i’m, accepting the risk that i’m going with – and you definitely don’t want to lose money, even if it’s money that is okay to be lost. So please make sure you’re doing your dd here, it’s really really important, again: i’m, not a financial advisor. This is just what i am doing, but let’s say everything goes well. We close at like 13 or 14 on friday. Then we see a gamma squeeze. It goes up to like 20 30 40. I mean honestly, nobody knows where this thing’s gon na go in the short term, it’s, so volatile, and if we hit this gamma squeeze and then transition into a short squeeze, i mean something like a hundred dollars. It does not seem completely unrealistic now again, so much has to go well here, but, as you can tell i’m, just really excited that a play that i’ve been talking about for a few weeks that a lot of people have said is dead. I mean i know.
I said this, but so many people said this was dead it’s over stop talking about it talk about other stocks. Well, i do talk about a lot of other stocks that i’m interested in this one just never felt like it was over it just didn’t and i’m. So happy that i stuck with that conviction. Obviously today was a great day for that, and i do not think this is the end. I definitely don’t, i think, there’s more room to run here. I think next week could be huge for amc. I saw a lot of people on my comments on the last few weeks, saying they were holding they weren’t going to sell. They had the same conviction that i had they believe this thing could run up and that’s just another reminder that you want to have conviction in your plays, because these people made a lot of money today and again. I believe this is the only the beginning. So there will be more buying opportunities. Please don’t, buy out of fomo don’t just jump in to buy, because you think one of these prices here, you think it’s never going to go lower. I mean, i know a lot of people that lost money with gamestop or even with amc by buying too high. So please don’t be worried. There will be buying opportunities. If you have conviction this play, you will find yourself in a place where you will be able to make purchases on the stock.
I definitely don’t think it’s over and i think i’m really really excited for the future. With that all being said guys, i know we did have a lot to cover in this video, but i find all of these pieces to be very important in constructing my overall thesis for this company, which has been the same that it’s been a few weeks ago, Which is going to be the same moving forward, i like the stock. I think it has room to run i’m, glad i’ve stuck with my conviction, and i will keep holding and i may be looking to get more, potentially even make options plays. So if you want to get notified whenever i do that and post a video about, it definitely be sure to hit that subscribe button. We are on the road to 20 000 subscribers and that support helps so much also if you want to get what i’m doing in real time, i have a patreon which is linked to a discord and that’ll, be in the pin comment down below where i give Access to all of my trades immediately, so you can get access to that, which is awesome. Also any research that i’m doing as well as a challenge where i’m trying to turn one thousand dollars into ten thousand dollars in just one year, which amc is part of that portfolio. Among many other plays as well as buy monthly calls, and so much or more so definitely be sure to sign up for that, so you don’t miss out, and i would love to have you over there.
Finally, guys, i really really think it’s important to be able to trade pre and post market and weeble allows that they’re also going to give away two free stocks when you deposit 100, in a new account, valued all the way up to 18 1850. Excuse me, and if you use that top link in my description box down below you’ll, be able to do all that, it also helps support the channel. So definitely, definitely especially with the next few days coming up, be sure to do that if you have not already. Finally, guys if you’re excited for tomorrow, you you, like amc, you’re excited for this weekend and you just want to help out the channel be sure to give the video a like that really really helps with all that being said, i’m very excited. I don’t think this is the end. I think we have a lot to go moving forward. It is still risky. There is a lot of risk here. So please understand that before you make any decision, but i’m excited to make videos on this over the coming days.