00:00folks you better buckle up this morning
00:02GameStop broke out to a level we haven't
00:04seen since May 2021 and in today's video
00:06we're going to be discussing the setup
00:08on how far this can climb what history
00:09suggests is coming next the latest going
00:12on behind the scenes with the short
00:13squeeze setup and the best strategies to
00:15potentially play it and then we'll be
00:17going into AMC AMC broke out pretty
00:19aggressively itself this morning as well
00:21it went all the way up to
00:22$13.30 they also announced they
00:24completed a $250 million share offering
00:27I'll discuss what that means for Spike
00:28ability and whether this offering being
00:30behind us is indeed a positive Catalyst
00:32we'll also talk about the one advantage
00:34that AMC actually does have right now
00:36over gme and we'll get to work in a
00:38second but first quick plug we are
00:39officially launching our squeeze 50
00:41sales squeeze 50 will get you 50% off
00:43our options membership which includes
00:44our step-by-step lessons private Discord
00:46chat and options alerts but what are
00:48some of the recent alerts Charlie well
00:49thank you for asking we alerted gme
00:51calls yesterday and those ran from about
00:54$35.70 at highs this morning a roughly
00:57279 run alert price to high we alerted
01:00AMC calls yesterday those ran from about
01:0288 to $480 at highs a roughly 443 run
01:07alert price the highs obviously we're in
01:09a very hot market right now and these
01:10are some of our hottest winners but if
01:12you're looking for well researched
01:13in-depth options ideas and an overall
01:15program that is very very well made and
01:18for beginners Well I'll put the link
01:19down below for you to learn more squeeze
01:2150 we'll get you 50% off okay let's go
01:23ahead and get to work so the meme trade
01:24is just getting started and how do we
01:26know this well we know this because we
01:28are in the beginning of the awareness
01:29stage people are just waking up now and
01:32getting engaged you look on Google
01:34Trends searches for gme and AMC are just
01:36starting to go up mimicking a lot of the
01:38trends that we saw during the first
01:39cycle back in 2021 you have tens of
01:41thousands if not hundreds of thousands
01:42of folks that have essentially been
01:44completely asleep and dormant since 2021
01:46meme era runs and they are just starting
01:48to become aware of the situation here
01:50and wake up and a lot of them are
01:52choosing to hop on the trend and into
01:54the stocks and when that happens it
01:56causes the prices to go up even further
01:58and attract more and more attention
01:59which is a big self-fulfilling prophecy
02:01now you go and you pull up the chart on
02:02gme well gme yesterday went from around
02:0417 bucks to 38 at highs and then sold
02:07off to 27 that was a drop of about 29%
02:10it later went on to more than double in
02:12today's premarket to 80 bucks and then
02:13it went ahead and sold off again to 35
02:15bucks at lows that's a drop of about 56%
02:17now the reason that this is important is
02:19because when you are in a momentum cycle
02:21the bigger the drop the more the rebound
02:22effect it's like a trampoline the
02:24further you go down the further it'll
02:25shoot you up and assuming the Springs of
02:28the trampoline stay in place which seems
02:29to be the case here well we should be in
02:31the exact same situation where you're
02:34going to see a much bigger shoot up than
02:35next bounce but why is this the case
02:37though well it's because huge dip buys
02:39allow the opportunity for people who are
02:40late to the game to buy in at
02:42substantially discounted entry prices it
02:44allows shorts that don't want to mess
02:45with this a second time around don't
02:46want to mess with a big meme Resurgence
02:49to essentially cover before the next
02:51rebound and it overall gives time for
02:53the next wave of upward sentiment volume
02:54to flow back in now what many are
02:56shocked about is the sheer resiliency
02:58that both gme and AMC have had through
03:01countless halts volume that is coming in
03:03right now is completely completely
03:06undismayed which is a very very strong
03:08indication for further uptrending
03:10especially when you're talking about gme
03:12now let's talk about the next Catalyst
03:13which I believe is a gamma squeeze 2. so
03:16many people trade gme with options and
03:18when people buy options the market maker
03:20has to fulfill set options and in the
03:22last couple of days a ton of out ofthe
03:24money options that wouldn't have been
03:26anywhere near profitable when gme was
03:28trading in the $15 region are now
03:29suddenly very very very profitable which
03:32did cause a bit of a gamma squeeze on
03:33the way up but you have a lot bigger of
03:36a gamma squeeze coming as some of these
03:38farther out options get closer and
03:39closer to expiration you see market
03:41makers as of last week had no idea that
03:4330 40 50 60 or even 80 strike calls had
03:47a high likelihood of expiring in the
03:48money but now they do so what happens
03:50next well the longer the price stays
03:52near those levels the more shares market
03:54makers are going to have to buy in order
03:56to hedge against that risk the risk of
03:58losses on paying out those options
04:00contracts improbable contracts that are
04:02now very very probable and that is what
04:04is called a gamma squeeze not to be
04:06confused with a grma squeeze which is
04:07when your grandma feeds you too much
04:08food and you get fat you can't leave
04:10your door without squeezing out of it
04:12but anyways I want to show you the short
04:14seller situation here if you're a short
04:15seller thinking you want to short the
04:17heighten gme price well according to I
04:18borrow desk data borrow fees have come
04:20from some 88.1% as of May 10th to 21.9%
04:24as of today May 14th and the amount of
04:27borrows available have dropped
04:28dramatically now these just record the
04:29public borrows available but the truth
04:31is that the dark exchanges are probably
04:32not much better in terms of rates
04:34because otherwise Brokers would simply
04:35be incentivized to Simply lend them out
04:38publicly right why settle for 5 6 7 8%
04:41rates when you can go onto the public
04:43exchanges and settle for 20% so what's
04:45the point that I'm trying to make here
04:47well the point is that Firepower for
04:48shorts to push the stock down via
04:50shorting is getting more and more
04:51limited which we love to see yesterday
04:53we talked about how the effective short
04:55interest is probably around 43% if you
04:57use the public numbers we have and you
04:59subtract direct registered shares and
05:01Ryan Cohen shares which are essentially
05:02locked out from being lent and don't
05:04move much and when you look at that 43%
05:06short interest you got to start thinking
05:08okay wait a second if even a quarter of
05:10those short sellers want to start
05:12covering that is going to chase the
05:13price up so aggressively that everybody
05:16is going to see a massive massive return
05:18which again I mean is the whole thesis
05:19for why people are buying right now next
05:21I want to bring you over to the Roaring
05:22Kitty angle the big reason that this
05:24meme Revival is back on right now is
05:26because of Mr roaring Kitty and if you
05:28look at all of the Twitter SLX videos
05:30he's posted it seems obvious he's been
05:31planning this for quite a while the
05:33question is why now and is he just going
05:35to stop and let the attention die off
05:37well I think there's a reason he chose
05:39right now and I think that he's not done
05:41giving this stock attention now there's
05:43two angles that I believe that he is
05:44playing off of right now number one
05:46there was a huge Divergence between gme
05:48short interest and gme's price as the
05:50price went down shorts actually decided
05:52that it made even more sense to increase
05:54their shorting positions that's like the
05:56short seller equivalent of buying a
05:58stock after it's run up 5,000 % like
06:00sure it could keep running but you're
06:02leaving yourself open to a huge blowout
06:04and number two unless he secretly sold
06:05all of his shares he likely still has a
06:07massive position in April 16th 2021
06:10roaring Kitty said he had about 200,000
06:12shares of gme which split adjusted would
06:14be 800,000 shares $800,000 shares at
06:17last week's trading price of $10 is $8
06:19million but $800,000 shares at this
06:21morning's highs of $80 is $64 million A
06:25$64 million position so I mean a few
06:27weeks of planning meme videos to see
06:29potential 8X in wealth growth in media
06:32coverage Resurgence is not a bad idea
06:34and good luck trying to get him into
06:36trouble all he did was post memes he
06:37didn't even talk about the stock he
06:39didn't even mention the stock it's not
06:41his fault all these people bought in so
06:42so folks I think the combination of ripe
06:44short interest with the huge incentive
06:46to drive interest back into the stock
06:48the tens of millions of dollars
06:49incentive to drive interest back into
06:51the stock well I think those things are
06:53what made him post and I doubt he's done
06:55now I think he saw the setup I think he
06:57likes the money and I think he likes the
06:58celebrity CLE loves the attention in
07:00drama that's why he's posting all of
07:02these video clips that are very very
07:03well fought out and very very cryptic
07:06and hey kudos to him lots of people in
07:08the big money world big hedge fund guys
07:10they'll go and they'll take massive
07:12massive positions in a stock whether to
07:14the short side or to the long side and
07:16then they'll go on CNBC and all the
07:17mainstream media outlets and talk up
07:19their position if it's a short position
07:21they'll say only bad things about it if
07:22it's a long position they'll say oh I
07:24can't believe how great this company is
07:26everybody should buy and then all of a
07:28sudden they make money just by talking
07:29about it next let's talk AMC so for
07:31whatever reason a lot more people are
07:33interested in AMC on Twitter and in the
07:35media than on gme I don't know why that
07:38is I think it's largely because the
07:40share price is lower per share so retail
07:42gets more excited again when it comes
07:44down to the difference between gme and
07:45AMC for me the big difference between
07:47AMC and gme is that AMC has just raised
07:50so much Capital created so many shares
07:52over the last couple of years where gme
07:53has done virtually nothing and the
07:54problem with AMC is also it's really
07:56really difficult to risk manage when you
07:57have constant dilution even today we got
07:59another one of those press releases from
08:01CNBC quote AMC raised about $250 million
08:04of new Equity Capital completing the
08:06sale Monday during the revived meme
08:08stock craze triggered by the return of
08:09roaring Kitty the movie theater operator
08:11sold 72.5 million shares in in an at the
08:14market Equity offering that it launched
08:16on March 28th AMC sold that stock at an
08:19average price of $345 per share before
08:21commissions and fees the filing set now
08:23here's the thing I've been upset about
08:25how AMC's share count has expanded I
08:27talk about that every time I talk about
08:28AMC but at the same time it appears here
08:31that retail is trying their best to give
08:33AMC a chance a millionth chance at
08:36Redemption I'm hoping that after this
08:38offering closed which it closed today
08:40that the board decides to take that
08:41chance and allow no new offerings to go
08:44through for at least a few weeks now I'm
08:46not going to say that I'm excited about
08:47AMC because while I am hoping for that
08:49I'm also not naive fool me once shame on
08:51you but fool me 20 times shame on me
08:54right that just means I'm a moral but
08:55here's what I will say with AMC stock
08:57AMC is set up to run and it can run a
09:00lot if the board doesn't decide to do
09:02what the board always does if the board
09:05simply decides to hold off on diluting
09:07more and the one advantage it does have
09:09again is that it does have that lower
09:10share price than gme which makes it a
09:12lot easier for retail to acquire shares
09:13but at the end of the day if you're
09:14going to choose between one gme or AMC I
09:17still think that gme is a far far better
09:19squeeze setup AMC they're just too
09:22dilution heavy they just have too big of
09:23a float now and the board just doesn't
09:26seem to really respect its shareholders
09:28but anyways folks look bigger picture
09:29there is something big brewing with all
09:31these short squeezes because it seems
09:33like everyone in the media is freaking
09:34out this morning you had a lot of
09:36negativity from the elites I mean uh
09:38intellectuals about this gme rally
09:40former SEC chair Jay Clayton says he is
09:42bothered by the GameStop gme situation
09:44and is questioning whether the US
09:45government should get involved he
09:47pointed out that the massive swings in
09:49stock prices based on tweets and
09:50speculative buying resemble gambling
09:52more than genuine investing according to
09:54him these activities could potentially
09:55undermine the Integrity of financial
09:57markets and the sentiment is being out
09:59everywhere it bothers me on on many
10:02levels I I think your last guest got it
10:04right it it's it's a lot closer to
10:06gambling than it is to trading and it's
10:09certainly not investing and and it's
10:10very very interesting to me that retail
10:12folks deciding to buy a stock is
10:14undermining financial markets but
10:15Congress trading on privileged
10:17information hedge funds buying up single
10:19family homes and Brokers allowing
10:21trading against their own retail
10:22customers is just good business and good
10:24for markets I guess the truth is folks
10:26that a lot of these people just simply
10:27do not want the little guy to to succeed
10:29if you try to climb up the ladder
10:31they'll Force you back down by raising
10:33your taxes devaluing your dollar
10:35changing your regulations supporting
10:37your competitors and if you do manage to
10:39beat those odds and become successful
10:41they'll use half of your money to fund
10:43Foreign Wars it's quite frankly genius
10:45and if you complain about it they'll
10:46call you uneducated or unempathetic so
10:49anyways folks when you're seeing all of
10:51this reporting about how stupid retail
10:53Traders are and how people don't
10:55understand that they're buying based on
10:56memes and they're not genuinely
10:58investing well you got to understand
10:59that people aren't buying based on memes
11:02they're buying because of the short
11:03squeeze setup presented by the memes
11:06when a meme results in widespread
11:08attention and volume and buying pressure
11:10for a stock that is heavily shorted and
11:13in many cases predatorily shorted well
11:16all of a sudden you have a huge short
11:17squeeze setup so this isn't about oh
11:19you're not genuinely investing this is
11:21playing the game like they play it
11:23anyways folks that caps off today's
11:24video let us know what you think about
11:25gme and AMC down below make sure to take
11:27advantage of that squeeze 50 coupon code
11:28and we'll see you in the next video
