Just a little theory of mine. Please don't brick my phone again (lol) or kill me. :(
Where do I start. So there are these Blackrock "funds" who reduce portfolio volatility by selling calls on their underlying security. I imagine they teamed up with a similar "fund" from Vanguard. People from r/WSB love buying out of the money calls. The option market has tripled in the last couple years. Sure these guys realized how much money could be exploited from retail by taking advantage of the insane hype surrounding the little guy vs big guy story. So there's smart ape and dumb ape. Smart ape has very basic understanding of calls knowing one simple fact: more banana. Dumb ape likes bananas too and smart ape loves teaching it to others. Process of enabling options on Robinhood is easy as using Facebook. At first to ape brain it feels like cheat code to making money because so many of us believe we can predict when a stock will rise before we've had failure. All these variables create very nice money printer. No brainer for these two to work together. Wonder if that's why they increased their positions by 53% and 58% while already being two biggest share holders in company during the first week of February. Can't imagine these two would increase positions like this to take on the risk involved in performing squeeze play. Why not just collect premium from the apes? A lot of calls to write for the degenerates. Two giant financial institutions working together are very effective at manipulating price. I wonder if a certain price is agreed upon for expiration that way they know premium collected day of sale is money guaranteed to stay in their pocket. Knowing what the price will be at expiration eliminates the need to hedge their positions. On the details page for a Blackrock fund of this nature there's a variable labeled "overwritten". Writing naked options is a function of these funds. They are so confident in their ability they encourage this level of risk. The simple description ends with "enhanced portfolio returns". They want it as high as possible regardless of the implication. Might as well give your cash to the garbage man. So there's an obvious interest in maintaining the squeeze narrative so those chasing the dragon use the last 20 bucks in their account to get another 16 dollar call that expires in four days. Those remaining are probably spending their rent money by now. Blinded by thoughts of freedom. A way out. If you wanna believe in AMC it's really easy to find confirmation in misinformation. Brilliant manipulation. So what else to do while printer brrr-ing away? Day trade. Essentially jerk each other off. A lot of you here get in on the action. Big party fun wooo 🎈🎈. Borrowing shares from each other to short ... manipulating price. Working together with a fistful of lotion. I don't know exactly how this part works but you'd be stupid to not admit the two biggest shareholders of AMC don't have significant influence on price. Brings me to my last point...the heartbreaking realization I had while eating cold and soggy McDonald fries..... The hold narrative disguised in all it's glory is the foundation for this to exist. Not a fun realization to have but it gives someone a choice. Be a filthy peasant collecting garbage the rest of my life? Or make money? Anyways... the last point is. Forgive me if I don't get this part perfect. Amount of price movement in stock is controlled by volume. Direction of that movement is decided by more selling or buying within volume. So if most typical investors are spooked by the stigma and retail is tapped out holding the line.... the playground is open for all but the only two people there are just jerking each other off. wtf?? I don't know how the other fish come into play here but I feel like they are too insignificant considering the size of these big gay whales. They generate the volume they decide the price. Retail has given them control. Wonder how effective artificial intelligence would be in this considering the amount of control due to volumw. Anyway that's my theory.
Remember keep holding and don't sell you paper handed bitch
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