Category: Investments (Page 2 of 24)

It’s True, The Threshold Security Could Change The Game: AMC

AMC Threshold List
The SEC’s Threshold Security protects AMC from hedge fund manipulation

AMC Entertainment has joined the NYSE Threshold Securities list again.

The last time made this list was sometime in June of 2021.

This educational article is going to go over what this means for the company and how it even made the list in the first place.

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What is a Threshold Securities List?

AMC threshold securities list
Threshold Securities AMC List.

A threshold security protects stocks that have had 5 consecutive settlement days in a clearing house as “Fail-To-Delivers“.

Protection from the SEC also requires that the stocks FTDs total more than 10,000 shares.

A fail-to-deliver for our new retail investors basically means that an investors trading contract, such as a call option, was not executed when it should have been.

This occurs when a clearing house does not deliver on their obligation to close the contract.

This creates fail-to-delivers which in turn limits the momentum and growth of a stocks price action.

In other words, it tampers with the natural flow of a stock’s growth.

FTDs and naked shorting

Another known cause for FTDs is the practice of naked short selling.

This is when hedge funds trade imaginary shares that they don’t own or exist.

These transactions fail to clear since the shares were never in a traders account to begin with.

This illicit activity is basically like adding zeros to a check you received without the full amount being in that account.

When you get caught you’ll eventually have to pay it back.

It’s that or you go to jail but we all know these sleezy people always get bail.

Well now the SEC has gotten involved and is saying no more.

We’ve been heard community.

And this is massive news.

Here’s how this will affect AMC’s stock price.

Related: Investors Say CEOs Should Fight Naked Short Like GNS

Why is a threshold security significant to AMC?

A threshold security comes with regulations that heavily play in retail’s favor.

One of the regulations is known as rule 204.

Rule 204 requires brokers and dealers that are participants of a clearing house to close out failure-to-deliver positions.

Yes you read that correctly.

Here is the source straight from the SEC’s “key points” under III. Regulation SHO.

SEC

“Closing out requires the broker or dealer to purchase or borrow securities of like kind and quantity.”

SEC

AMC Entertainment was added to the NYSE Threshold Securities list on Friday, June 25th 2021 during the ‘meme stock frenzy’.

This year it made the list this month.

Section 203(b)(3) states that clearing houses must close FTDs if they persist on to 13 consecutive trading days.

Why it Matters

  1. It’s a win-win situation for retail investors. If hedge funds continue to manipulate the market and generate FTDs then they’ll be obligated by law to cover the millions of dollars and shares they’ve been failing to process.
  2. On the other hand, if shorts begin to properly exercise contracts then we will begin to see momentum pick up rather quickly from executed trades. This too can create several gamma squeezes due to the amount of volume being pumped into the market.

By adding AMC Entertainment to the Threshold Securities list, the SEC is basically stepping in and calling hedge funds out on the court.

It’s a way of saying things need to be done the right way or else.

I’m extremely curious to see how this will play out.

What do you think?

Leave your thoughts below.

Read: Deputy Global Treasurer Michael Kurlander resigns from Citadel

Sources

  • NYSE Threshold Securities AMC List – visit here
  • SEC Key Points About Regulation SHO – visit here
  • Threshold Securities – Investor.gov – visit here
  • Threshold List Definition – Investopedia – visit here

Market News Published Daily

AMC Stock News Today – AMC Threshold Securities List Update.

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TD Ameritrade Reports 40.25% AMC Short Interest

TD Ameritrade AMC Short Interest Glitch
Market News: TD Ameritrade AMC glitch.

Screenshots from TD Ameritrade have come up on Twitter of AMC’s short interest at 40.25%.

Ortex is reporting AMC to have a short interest of 16.99% (2021 Archive).

So where is TD Ameritrade pulling up this information from?

They actually have a response to that.

franknez.com

Welcome to Franknez.com – the ape community has mentioned from time to time that a lot of the data provided by financial institutions is skewed. Here’s an example that happening right now.

“Our news and research is provided by Third Party Vendors”

So, why is this short interest data important?

Retail investors rely on the short interest data to determine how much of a company’s float is being shorted.

The short interest that Ortex is reporting is significantly less than that of TD Ameritrade’s.

TD Ameritrade’s short interest data is more than double that of Ortex.

Short interest data also enables us to see how much ‘squeeze potential‘ there is in a heavily shorted stock.

At least to a certain degree.

So if we have sources reporting masked or hidden short interest data, it’s deceit in many accounts.

Or is this simply a glitch from TD Ameritrade?

TD Ameritrade AMC Short Interest Tweet
TD Ameritrade AMC Short Interest Tweet

The ape community is questioning why ticker symbol AMC is the only stock that has had a significant number of glitches throughout the year.

Or are the real numbers being masked to divert the public from jumping in on this short squeeze play.

Afterall, hedge funds have begun closing, with many losing billions this year.

Read: Anchorage Capital closes after betting against AMC stock

Where is this data coming from?

The data comes from MorningStar but both TD Ameritrade and ETrade experienced this anomaly in their system.

TD Ameritrade AMC Short Interest 40.25
TD Ameritrade AMC Short Interest 40.25

According to TD Ameritrade, this was a glitch in their system.

However, the data would have not been changed unless the retail community pointed it out.

Was this a mistake on their end that retail was not supposed to see?

Or was this legit one of several glitches that has been occurring specifically for AMC Entertainment stock?

I’d love to know your thoughts in the comment section below.

The broker is stating their technology team is working to correct the information but have no ETA as to when the correct data will be restored.

Why so many glitches with AMC stock?

AMC Entertainment has been experiencing several glitches throughout 2021.

They have varied from skewed data such as the short interest, to chart patterns, and even share price.

The ape community has concluded over the months that AMC’s short interest data is significantly higher than what is being displayed.

Lou from the YouTube channel has even concluded that AMC’s share price is being masked and could be in the hundreds to even thousands of dollars per share.

Now, while these are rather extreme claims, it’s not difficult to understand why such claims have been made.

AMC is one of the most overleveraged stocks from hedge funds shorting it.

Millions upon millions of shares have been borrowed to short it all year.

The feds have now begun investigating short selling practices and are tackling hedge funds who pose systemic risk.

As more hedge funds close, and others continue to bleed their customers, retail investors suspect they will do everything in their power to deceive retail from squeezing them from their short positions.

An interesting narrative, but a very likely one just as much.

What other glitches have you seen in AMC stock?

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Out of the several glitches that have occurred, what other glitches do you recall seeing in AMC Entertainment stock?

Leave a comment below.

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How To Invest In Bitcoin Cryptocurrency For Beginners

How to invest in Bitcoin and other crypto

Bitcoin has revolutionized the way we think about money and how we invest it. Kevin O’ Leary himself thinks Bitcoin will beat the S&P500, which earns on average 7-10% annually by an additional 4%.

I frequently get asked what I think about Bitcoin. In all honesty this could be a great place to park some of your money for the remaining of the decade. And I’ll explain why later but first lets go over how to invest in Bitcoin.

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Welcome to Franknez.com – the blog where you can digest content on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.

Lets get started!

Is Bitcoin the future?

Let’s face it, anything digital is the future.

The way I look at Bitcoin is that it is gold in digital form.

Why?

Because there’s a limited amount of it and there’s a huge demand for it.

I don’t necessarily view Bitcoin as a means of currency to be used for transacting in the markets.

Bitcoin to me is a means of multiplying your money like any other investment.

The difference with Bitcoin however is that nothing has quite grown like it.

This is what makes this investment, or trade so attractive.

Will Bitcoin go back up?

BTC is showing major signs of a recovery.

Investors should not worry about the selloffs that recently took place.

Hedge funds and other institutions shorting companies at the moment are in hot waters and are in desperate need of capital.

View this market dip as an opportunity to buy at a discount.

The crypto market is undergoing a correction and will reach new levels growth with each passing day.

BTC is recovering quite well.

All the markets are volatile at the moment, long-term investing takes time.

Where can I buy Bitcoin?

Alright community, this is why you’re here.

Before you begin your very first investment in BTC you’ll need to open a brokerage account with a cryptocurrency investment platform.

I personally use Coinbase.

how to buy bitcoin
How to buy Bitcoin

Coinbase allows me to buy Bitcoin and other cryptocurrencies at ease straight from my laptop or from my phone.

When you purchase Bitcoin with Coinbase, you’ll be able to see the stats and charts wherever you go.

In fact, Coinbase makes it easy to purchase BTC and other crypto.

Before, you would have to transfer money through an ACH transfer which would take days.

Now, you can easily connect your bank account and make purchases instantly.

This convenience makes Coinbase one of the best platforms to use for crypto trading.

Aside from this, the layout is extremely easy to navigate.

how to buy crypto
how to buy crypto

Some of the most popular banks you can link to immediately include:

  • Chase
  • Wells Fargo
  • TD Bank
  • Bank of America
  • and PNC Bank

Online banking payments are secured and you also have the option to choose from 1,000 other banks if you don’t use the most common ones.

Other popular banks include Ally, Capital One, U.S. Bank, and BMO Harris just to name a few.

This list is huge which means it should be no problem finding your personal bank to start now.

Begin by creating your account first

Creating your account with Coinbase is very self explanatory.

Follow the steps and input all of your information to get started.

This part of the process is as simple as opening a bank account for example.

If you have a brokerage account for stocks, then you’ll find it’s almost an identical process.

how to buy bitcoin
how to buy crypto

Congratulations!

You’ve now created your account to buy Bitcoin.

Purchasing it is just as simple if not easier than creating your account.

All you simply have to do is navigate your cursor to the top of the web page where it details ‘Buy/Sell‘.

how to buy crypto
How to buy crypto | how to purchase crypto.

Here you’ll be able to input the amount of money you will be investing in for Bitcoin or any other cryptocurrency using the drop down menu.

It’s that simple.

Can you buy a fraction of Bitcoin?

Absolutely! You can put $100 or $10,000 into BTC and your purchase will execute in the form of fractions.

Your investment will then go up as the market value for BTC continues to surge.

Unlike most stock market brokerage accounts, you can buy fractions of all type of crypto with Coinbase.

This is extremely convenient for the average retail investor.

When you buy Bitcoin you’re going to see the balance available in the form of decimal fractions.

My very first investment in BTC was $100; this translated to 0.00174 BTC.

Your fraction count will increase as you buy more of that investment.

Is it too late to buy Bitcoin?

Contrary to what most novice investors might believe, it is not too late to buy BTC crypto.

Yes BTC was once a few bucks but just because it’s worth what it is today does not mean it’s too late to invest in it.

Trajectories show BTC is well on its way to new records.

And although there has been a huge market selloff earlier this year, Bitcoin is moving up again.

You can now buy more fractions of a Bitcoin today than you could prior to this liquidation.

And I’m personally taking advantage of it.

How high can Bitcoin go?

Experts and analysts believe BTC will continue to surge well into the 100k range during this decade.

Andrei Jikh even believes BTC could reach $500,000.

Can BTC reach $500,000?

I don’t doubt BTC will continue to surge and reach well beyond 6-figures.

With this dip in the market, now is the perfect time to buy at discount.

Don’t ask me how much you should invest in Bitcoin though.

This will vary from investor to investor.

All I know is that the opportunity to multiply your money with crypto is there.

If you’ve made profit from Doge, I would allocate these gains into BTC in case you’re thinking of investing in this crypto.

Remember, unlike Doge which is inflationary, BTC is deflationary.

Meaning it has no ceiling as to how high it can go.

But that’s not all.

Chamath, who predicted Bitcoin’s current price point since inception, is confident this cryptocurrency will continue surging well above $100k.

Chamath was an early investor of Bitcoin and Facebook.

This venture capitalist predicted Bitcoin would be worth well over $10k when the price was only a few dollars.

Can I buy other cryptocurrencies with Coinbase?

Yes, you can buy a variety of cryptocurrencies with Coinbase.

Other popular cryptocurrencies include:

  1. Ethereum
  2. Tether
  3. Binance Coin
  4. Terra
  5. Cardano
  6. Solana
  7. Dogecoin
  8. Shiba Inu Coin

When investing long-term in crypto, it is best to strategize your success by diversifying in a few cryptocurrencies first.

Does Bitcoin have real-world value?

Yes, Bitcoin makes it possible to transact money online securely using blockchain technology.

Bitcoin was the first level of blockchain technology, Ethereum the second, and Cardano the third.

Here’s a more through explanation on how Bitcoin works.

How does Bitcoin work? How to purchase crypto.

Most investors are buying Bitcoin as an asset though.

The value of Bitcoin is projected to get relatively high.

Your investment today has a high probability of doubling if not quadrupling this decade.

At least that’s what bulls believe.

But see, cryptocurrency doesn’t seem like it’s leaving.

It’s here to stay and many people are getting in on the crypto asset before it truly is too late.

And lastly…

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If you gained any value from this blog post please be sure to share it.

It helps us reach more like-minded individuals looking to improve their lives by learning to invest and how to buy crypto.

And if you haven’t started investing in the stock market yet, read this step- by-step guide on how to start today.

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How to Read Stonk-O-Tracker For Beginners

how to read stonk-o-tracker for beginners

I want to guide new retail investors in every way I can. I’ve received questions regarding what the information on Stonk-O-Tracker means.

I’m going to break down what all the data is presenting.

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Welcome to Franknez.com – the blog where you can digest content on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.

Lets get started!

Stonk-O-Tracker AMC

Stonk o'Tracker AMC

The information at the very beginning of Stonk-O-Tracker is pretty self-explanatory starting out with NYSE.

This is the price closed from the New York Stock Exchange.

This is the stock’s price.

SSR stands for short sale restriction.

The SSR prevents from short sellers from continuously shorting a stock.

The SSR shows the price in which this regulation was triggered.

When SSR triggers it’s usually due to an insane amount of shorting driving the share price of a stock down.

The SSR protects retail investors and activates once a stocks share price falls below 10% from the previous trading day.

FRA is the Frankfurt Stock Exchange.

The FRA is German’s largest stock exchange.

The price here is translated in euro.

Related: Are Institutions Preparing to Close Short Positions in AMC?

Stonk-O-Tracker Calls ITM & Shares Available to Borrow

calls ITM & Shares available to borrow AMC
Stonk o’tracker

What are call options in stocks?

People in on AMC stock either buy the stock or buy call options. Call options are contracts that you can bet on to execute by a specific date.

What makes these contracts attractive is that premiums are cheaper to purchase as they’re usually sold in ‘bundles’.

Investors who buy call options are usually speculating the price of a stock will be significantly higher in the future.

Calls ITM expiring: This is the number of calls expiring on the specific date detailed.

If an investor placed a strike price of $49 dollars by the end of Friday and Friday’s price action is $55 then that call option expires in the money, otherwise known as ITM.

Calls ITM expiring on Stonk-O-Tracker is the number of these contracts expiring on the date detailed.

Calls ITM: Calls ITM refers to the number of call options expiring at a specific dollar amount.

In the reference above it details 21,823 calls are expiring in the money at $50.

Borrowed Shares Available

Borrowed shares available stonk-o-tracker
Borrowed shares available Stonk-O-Tracker – Stonk o’tracker AMC

The borrowed shares refer to the number of shares short sellers have available to short a stock.

This number decreases when a stock is being shorted, or the price is being driven down.

Short sellers can continue to borrow more shares even after they’ve used some or all. However, this comes at a price.

Shorts must pay the fee detailed in the chart.

ETF available Stonk-O-Tracker

An ETF is known as an exchange trade fund. Like an index fund, these types of stocks pool a variety of stock in a bundle.

AMC Entertainment stock is pooled a few ETFs that short sellers can also short.

The ETF available is the number of ETFs hedgies can short.

Related: Will This Market Meltdown Trigger AMC to Squeeze?

Option data: Calls vs puts

what does option data mean on stonk-o-tracker
Stonk-O-Tracker Option Data: Calls vs puts – stonk o’tracker AMC –

The option data chart shows a stocks call vs puts. I went over what calls were above.

Puts are the exact opposite. Puts bet on the stock going down instead of up. When puts are executed, the stock is further laddered down.

This chart shows you how many options are in the money and out of the money.

Out of the money are simply contracts made that have yet to be anywhere near the current price range of a stock.

Trading data Stonk-O-Tracker

AMC dark pools
Trading data – AMC dark pools – AMC stonk o tracker – stonk o’ tracker AMC

The short percentage in the trading data is simply the percentage of the volume that is being shorted.

The dark pool percentage shows the percentage of trading that’s done behind closed doors.

This unknown platform is known as dark pools.

This is where short sellers can get away with additional shorting tactics.

The SEC must look into this as it’s a manipulative way to further short a stock. In this case, AMC and other meme stocks.

Fails-to-Deliver

Fail to deliver AMC stock
Fails to deliver AMC – AMC stonk o tracker – stonk o’tracker AMC –

Fails-to-deliver are contracts that did not execute in the pocket.

These are reported by the SEC (securities exchange commission) and are updated once they release that information.

This chart details how many contracts failed to execute and at what closing price they failed.

The SSR trigger info at the very bottom of Stonk-O-Tracker simply reveals the close price at which it stopped going into effect as well as the price SSR was triggered.

Need to write an essay on this topic? You can easily do this with AI Essay Write.

Read: Here’s why people are buying AMC stock: Investors guide

Community

If you found this article to be of value, be sure to share it with the community.

I feel it’s extremely important for us to share information and knowledge with new retail investors buying AMC stock and other short squeeze plays.

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