AMC’s high short interest data tells us AMC’s next price runup will be higher than its previous run from last year.
The movie theatre chain company reached an all-time high of $72 per share when a few short sellers began to close their positions in June of 2021.
The same executive order that triggered margin calls in January and in June of last year is going into effect again this June.
Executive order 14032 (formerly 13959) prohibited financial institutions from using Chinese securities as collateral – read more about it here.
So, how high will AMC’s next price runup go?
Let’s discuss it below.
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Short sellers have dug a deeper hole
Why is AMC going up?
Short sellers have borrowed more shares to short the stock than they did back in January and June when the stock ran up to $20 and $72 per share.
These shares on loan eventually have to get returned back to the lender (by buying back the stock).
This buying pressure will create momentum, driving AMC’s share price up.
How high AMC’s next price runup goes will depend on how many shorts close their positions.
When AMC surged to $72 per share in June, it had roughly just over 100 million shares on loan and a short interest of 24% before falling to 20%, then 14%.
Today, AMC’s shares on loan have reached an all-time high of 173.61 million with a short interest of more than 23%.
As long as AMC has a high short interest, it’s a short squeeze play.
But there are just way too many factors to determine how high AMC’s next price runup will go.
The percent of shorts closing being one.
The more the short interest drops, the higher we can determine AMC’s share price will skyrocket.
AMC to $100? AMC to $1,000? AMC to $10,000?
But what prices are realistic?
Theoretically AMC has incredible potential based on DD done by many intelligent retail investors.
Apes have created simulations allowing them to see a variety of price levels and possibilities, mainly calculating synthetic shares into the equation.
However, regulators have failed to address synthetics or hold institutions accountable to close these synthetics.
When a law is passed holding institutions accountable to close these synthetics, it will be EPIC.
AMC to $100 per share may only require some short closing.
We know this because of the ride to $72 per share.
Short interest dropped approximately 10 points from 24% to 14%.
14% is still a relatively high short interest, another 10 points from 14% would leave AMC with 4% short interest left – nearly done.
But doubling short covering doesn’t mean double the all-time high.
It could triple, quadruple or even 10X because of individual short positions in AMC.
There are just too many factors out there that limit us identifying exactly how high AMC’s next share price will go.
You may hold to any number you desire, but don’t burn yourself.
Keep an eye out on the data and have a strategy.
Creating a strategy
Every investor should have a strategy and have a plan to profit.
Your selling point will be different than another fellow apes’.
Don’t bag hold on the journey to $1MM per share – but rather accumulate the number of shares that will multiply your profit to a specific and desired goal.
In the end, bulls make money, bears make money, but pigs get slaughtered.
As AMC’s next price runup begins to take off, we’ll need to keep an eye out on the short interest (updated daily here) to identify whether it’s ‘the big one’, or merely small, short covering.
And as much as $1,000, $10,000, and $100,000 per share seems incredible, those things are out of your control.
My advice?
Don’t play the passive game.
Focus on what is in your control – increasing your multiplier and playing to win.
The community should throw out the question “how high will AMC squeeze?” and focus on profiting BIG and keeping an eye out on more price runup potential.
For example, AMC may have a big runup as executive order 14032 goes into effect next week, but the order may be amended (moved) shortly after.
If amended, this would mean AMC will have another price runup in the future where investors can profit from (again).
Everyone’s strategy will be different – just make sure you have one.
I’d love to hear your thoughts on the topic.
Leave your thoughts in the comment section of the blog below.
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Related: Is There a High Chance AMC Squeezes Next Week?
Great article Frank! Next, could you please do an article on the SEC’s corruption? They just made a YouTube video mocking retail investors, and disabled the comments! It shows meme stock investors getting pies to the face, and being laughed at for not doing research. (Check the official SEC YouTube channel).
I thought the SEC was supposed to help the retail investor, not humiliate us. What about the Ortex data that shows record high short interest %, record high borrowed shares on loan, FTD’s that magically disappear for stocks like AMC and GME?… these are the questions that should be addressed by the SEC.
We need your help Frank, our voices need to be heard to expose the lies and manipulation of these complicit liars!
Thanks-Portfilio_Predator
Hi Patrick – I just published a piece addressing this: https://franknez.com/former-branch-chief-disappointed-by-sec-meme-stock-video/
Be sure to share it brother – thanks for your activism 🤝
Part1:
Why AMC will squeeze in June, and why institutions will be margin called (Executive Order 14032, Rehypothecations, Cost to Borrow, etc.)
This is going to be a bit extensive, but this will have everything you’ll need to know about the upcoming MOASS, But we are legitimately very close to the squeeze because of multiple reasons.
# PART 1: EXECUTIVE ORDER 13959, 14032, & Thrift Savings Plan
* The first and major reason we’re close to the squeeze is the upcoming **Executive Order 14032** date, this executive order includes over **30 securities** on top of the **original 30** from **Executive Order 13959** that finance Chinese Military Companies, this order prohibits U.S. individuals and firms from investing in these assets. The issue is that market makers, banks, and prime brokers are SERIOUSLY exposed to these assets and use it as collateral for their short positions in AMC; which are going to be prohibited from these guys starting on **June 3, 2022 at 12:01 AM EDT**.
* In addition, **on February 16, 2022**, the Federal Registry hit **EO: 14032** with an additional **30+ military companies** on top of the other **30** on the order. This means the order now has **60-70+ companies** that are going to be prohibited on the order starting on **June 3, 2022 at 12:01 AM EDT**.
* The predecessor of **Executive Order 14032. Which is 13959**, have also caused AMC to run on **January 27, 2021** and on **May 27, 2021** because of the loss of overexposed collateral by overleveraged market makers, banks, and prime brokers.
* You might be asking, why didn’t we MOASS in January & June? The reason is that on the first run, Robinhood halted the buying of AMC stock, NOTE this itself DID NOT stop the January run, rather it stopped people from FOMOing into the stock. However when EO: 13959 was AMENDED to May 27, 2021 later that same morning, their collateral was given back to them and that was why we stopped running and dropped.
* On May 27, 2021. Market makers, banks, and prime brokers once again lost collateral on these Chinese assets, they would be margin called again and this led AMC to run to its ATH on **June 2, 2021**. The following morning on **June 3**, Biden issued new **Executive Order 14032**, which once again gave back collateral to these guys and AMC slowly moved down afterwards.
* What’s different? This new order adds an additional **30 military companies on top of the original 30, plus another 30 on top of that with February 2022’s Federal Registry**.
Part 2:
* One big reason why I don’t believe Executive Order 14032 will be amended, is that along with leaked audio of Chinese naval ships discussing about attacking Taiwan in the fall, is that we have Military & Federal Employee TSP accounts unavailable until the second week of June, which is suspiciously in line of the Executive Orders. And we have providers like BlackRock discussing about putting TSP funds in Chinese Military assets which will become worthless under the order.
* Also note Executive Order 14032 states that banks and prime brokers had to start divesting by August 2021, for the deadline of June 3 before the collateral becomes worthless again. But they only just started to in May and have only sold a fraction of those assets, and their likely last chance to divest runs out this week.
# PART 2: COMPLETE REHYPOTHECATION HAIRCUT
* Another reason why we are set to MOASS in June? As of May 2, 2022, large institutions can no longer rehypothecate assets to their client hedge-funds because of DTCC 16845-22; which can be used as collateral to prop up their maintenance margin to short AMC. This also explains why we didn’t MOASS straight away in January & June. Because what happened is that while Citadel & Susquehanna closed a fraction of their AMC short, Citadel’s prime broker; **J.P. Morgan**, stepped in by rehypothecating their assets to Citadel to prop up their maintenance margin to prevent a full-scale default while they were being squeezed because of the Executive Order.
Part 3:
What’s the problem they have now? As of May 2, 2022, Prime brokers can no longer rehypothecate their assets to their client funds to prop up their maintenance margin. This means as soon as the **Executive Order 14032** date hits, they will be **FORCED TO CLOSE THEIR SHORTS** with no way to soften the blow by borrowing assets from their parent banks to prop up their maintenance margin.
# PART 3: OVERLEVERAGED PRIME BROKERS
* Another problem on the end of the prime brokers, is that they’re highly overleveraged on derivatives and bonds that they use for collateral. They have 11 times more derivatives than they have assets, this much leverage will lead to massive margin calls on institutions like State Street who have loaned out shares to short sellers, which leads us to…
# PART 4: AMC SHARE RECALLS
* Here’s the fun part. Remember that I said institutions are overleveraged on assets and bonds? Well, when **BlackRock, Vanguard, and State Street** get margin called on Chinese Military Company securities and bonds, they will need to **recall their AMC shares** that they’ve loaned out to **Citadel and Susquehanna**, and given the fact that Citadel’s prime broker; **J.P. Morgan**, is one of the most overleveraged prime brokers out there. We’re going to see massive margin calls on Citadel & their prime broker, which will cause AMC to run explosively.
* Take note. **BlackRock, Vanguard, and State Street** collectively own at least **20%** of AMC’s outstanding shares that they’ve loaned out to shorters like **Citadel and Susquehanna** who will be **FORCED** to buy-in and return to their lenders by the **Executive Order** date.
# PART 5: WHY IS COST TO BORROW RISING?
* The reason why AMC’s cost to borrow is rising, is because lenders are seeing the risk that shorting AMC is posing, these lenders are worried whether or not short sellers will re-pay their shares in the event of a squeeze. They will partially hedge against the threat by increasing the borrow fee to discourage short selling additional shares of AMC. Just like higher interest rates discourage people from borrowing and taking on debt.
# PART 6: DARKPOOLS & FAILURE TO DELIVERS
* To finish up, there are a large amount of synthetic shares & Failures to Deliver created by hedge-funds through their prime brokers that they will be margin called on. The reason why they got themselves into this predicament in the first place, is that hedge-funds will buy shares of AMC in the dark pools, and use our buy orders that were routed into the dark pools, and then sell those same shares onto the open market.
[Negative Net Short Volume = buying in dark pools. This is where we’re getting much of the FTDs from.
Retail Stock FTDs as of outstanding shares. NOTE: AMC consistently has one of the highest dark pool volume.
* The existential problem they face? Because these hedge-funds routed our orders and bought in the dark pools, and then sold it on the lit exchange. They end up going short and creating synthetics and Failures to Deliver while **introducing infinite risk on themselves**. And they can’t cover their short positions through the dark pools, because they will have to buy their synthetics and Failures to Deliver on the lit exchange and forcing the MOASS to happen.
There we have it . Your thoughts APES!
Bruh 🔥🔥🔥
Let’s start a discussion! Leave your thoughts below.
Bruh, I don’ know if you check these anymore but Shimmer didn’t start the discussion, he obliterated it….Well Done Shimmy!