My Profitable Options Trick! Momentum Stocks & AMC Squeeze

in this video you're going to learn

about two big things the amc double

squeeze

and you're gonna learn how i just made

eleven thousand dollars of profit

in seven days on amc stock with a

special type of call option

strategy you're gonna wanna watch this

one let's get into the content

right now right after i mention that you

should get 40 off the amazing

programs link down below where i share

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all my strategies for options and

trading in the courses linked down below

with a sample coming up

in this video the 40 off coupon code

does expire in two days link down below

hey everyone me kevin here let's talk

about an amc a double squeeze and the

potential for this

first this video is actually inspired by

a conversation that i had

with a course member yesterday in the

stocks and psychology of money group

a course member was wondering hey kevin

you know it seems like at one point you

had indicated

that there was a squeeze at amc and they

were looking for some additional details

on that

because the implication was that maybe

that meant i thought the squeeze was

over which

is not true now this particular course

member is a course member of my real

estate agent course and not my stocks in

psychology of money group

it's worth mentioning because i've made

it very clear

in to stocks and psychology of money

course members that i believe

there could be multiple squeezes at

stocks

that are responsible for increases

in price rapidly that's of course not

the only thing that leads to price going

up

but the reason this conversation got

spawned is because there was some

information

circulating the internet yesterday that

if you look at the beginning of june

around june 2nd june 3rd

and you look at the short interest of

amc somewhere around

20 and then you compare that to the

short interest where we were

or are now i should say where we were on

friday because we were talking about

this yesterday

or where we are now somewhere around 18

17

then all of a sudden we look and go wait

a minute how did the price

go from lows to where we are now

if the short interest only went down two

or three percent

over the last essentially month that

that seems odd

that kind of implies like the squeeze

ain't squeeze and don't get me wrong i'm

not saying

the squeeze is close i just think that

there's no such thing as

the squeeze that there are multiple

squeezes that can happen

now we've talked about why i believe

this before in the past but it's

worth just doing a short reiteration on

this and then looking at some of the

latest data

so a very short sort of recap on this is

if we go into the ortex chart we could

see it pretty well here

we could see short interest right here

the estimated short interest as a

percentage of free float which is the

yellow line

correspond with a potential rise in

price

and then a subsequent massive decline or

rapid decline in the short interest

percentage

now because these are estimates of short

interest percentage you do generally get

a little bit of lagging data

but what's fascinating is and these are

the lessons that we could take away for

the next

phase take a look at this folks look at

what happened with amc at the beginning

of the year

at the beginning of the year this is

around january 28th at the bottom you're

going to see those blue candlesticks

those represent volume volume goes up

dramatically

price goes to the moon we get a gamma

squeeze because people

are buying out of the money call options

that are going into the money

and all of a sudden the price skyrockets

up the next day

and the next day we start getting short

interest as a percentage of free float

estimates coming out with settled

t2 data and all of a sudden boom we see

short interest percentage

plummet but look what happens as volume

subsides

all of a sudden price slowly bleeds out

at the stock

and what do the short sellers do they

reload

the shotgun they set up for the next

squeeze by increasing the amount of

shorts

they have helping drive the price

down and bleed the price down

now if we go to today virtually the same

thing is happening so first of all if

you compare

the beginning of june right around here

this is

june 2nd as i said and you look at an

estimated short interest percentage of

free float of 17.47

and then you compare that to where we

are now it's like wait a minute

actually now with the latest data we're

at 18

and so in the tweets that were

circulating or the online talk that was

circulating

these lines were pretty much par and so

the argument was hey there's there's no

way the squeeze could be close

but again to me there's no such thing as

a singular squeeze

a singular squeeze implies binariness it

implies

it either happened or it hasn't happened

i personally believe

that is a big mistake especially when it

comes to a stock like amc

in fact this was what the chart looked

like yesterday when i did this research

and this is using all or texts as well

and right here you can kind of see the

same thing it's like ah wait a minute

like when you compare the left peak to

the right peak

it's kind of like if you just look at

those two data points

you don't realize that what happened in

between was a bageled

plummet in the short interest see the

rumors that were circulating online

were only circulating the data points

for those two peaks

and to me it kind of looks like an evil

angry monster

see if you put circles around the

information that was circulating online

it's an evil monster of disinformation

or maybe i shouldn't say disinformation

because i don't think people are

intentionally

sharing wrong information but it's an

evil monster of misinformation it's very

important that we look for inflection

points

in trends now folks make arguments that

say hey

look kevin like you know 18 percent

short this is historically high

this is true 18 is very high

historically

there are a lot of different definitions

for what point short interest is deemed

to be very high

some articles say over 20 some say over

30

and that's when you get into the

extremely high short category

over 10 is deemed to be high short

ultimately though to me we have to look

at

relatively how much are the short

sellers concentrating into individual

positions

especially relative to the past and

what's interesting to me

is when folks say hey kevin the squeeze

ain't squishy i'm like wait a minute

wait a minute i'm not saying

the squeeze is close i'm just saying a

squeeze happened and i think we're

setting up for another one

i think there was a squeeze around

january 28th when we just saw on the

charts

short interest plummet i think there was

a squeeze right here on the left eye of

this cookie monster

or whatever monster you want to call it

the misinformation monster

i think there was a squeeze at this left

eyeball

and as short interest plummeted take a

look at the

chart that we have here as short

interest plummeted

what happened the price went up now

remember the yellow line is

lagging so it's natural for the yellow

line to come after the green

the point is the price went up squeezing

the shorts out to cover

shorts cover volume goes down

after a big squeeze you go into a little

volume hiatus which we've had over here

little volume hiatus leading to lower

prices at the same time

as we start consolidating guess what

happens the short sellers reload the

shotgun

they fill up the shotgun again ready to

attack

again folks this reloaded short interest

of 18.72 percent

is setting up in my opinion for the

third amc

squeeze we had one around january 28th

we had one right here around the

beginning of june the end of may

and i think we're setting up for another

one now

now no guarantees pricing is higher now

volume

is also lower it's possible that some

momentum has

left amc for the time being as as folks

have gotten distracted by

you know oh maybe clove is owned by

citadel and now all of a sudden clove is

getting pushed and now it's workhorse or

now it's there so now it's that

fine whatever but the point is this

latest data

at 18.72 percent short

with just 13.63 short interest as a

percentage of free floats seven days ago

in my opinion it's entirely possible

we're setting up

for another move which is really making

me tempted to take some profits on my

latest option strategy

while amc has been trading sideways wait

a minute kevin wait a minute

how can you profit on amc stock when

it's trading

sideways when you said you were gonna

have

all of your shares and you weren't going

to sell them well i'm not selling my amc

shares

in fact i still have them in fact i'm

going to prove it to you

and i'm going to show you how i just

made eleven thousand dollars

of free money boom that's right this is

my amc position on weeble now you're

gonna see this little 174

buy and sell you can kind of ignore that

that was supposed to be a really quick

swing trade but i had to go

so i set a trailing stop and it stopped

me out

and because i put it through as a market

order after the stop i ended up losing

20 bucks on that

that was like like you could just ignore

that because we want to talk about how i

just made 11

000 actually a little bit over eleven

thousand dollars eleven thousand five

hundred

twenty four dollars on amc trading

sideways and why i closed it out okay

you ready for this

so what i'm gonna do is i'm gonna grab

my order history here grabbed a couple

shots i just

executed these trades uh well actually

the closing trade i just

executed and so here you go this is a

trade that i executed on

june 21st as always to send all my buy

sell alerts to everyone in the stocks

and psychology money group

that 40 of coupon code linked down below

does expire in

two days so here's what i did i've got

my 75

000 80 000 whatever dollar position in

amc

and i've got about just over 1400 shares

so what i did is

i sold an 80 july

9th call on those amc

shares so now that sounds bearish

but it's not in my opinion because i'm

simply

trading my expectation is not to get

called out at all

and so what happened last week was i saw

the short interest declining

and well yeah june 21st i saw the short

interest declining

and i thought okay until we get the

shorts reloading their shorts

probably not going to see a new squeeze

until we get reloaded up back to 18 19

20

which is kind of where we are now okay

which is also why i'm closing that

because i don't want to get called out

i don't want my underlying shares to be

at risk so i sold

an 80 call for july 9th which folks is

in like

10 days and i sold this call

at 9 and 80 cents so what you do is you

do 9

and 80 cents times 100 per contract

times 14.

that means i got a 13 720

credit for giving somebody else the

right to buy

amc at 80 on july 9th

but i thought it might trade sideways

until we saw that volume coming back

and the short interest going up now that

the short interest is going back up

i decided to close this position because

i don't want to lose my shares i'm

diamond handing those

i just want to make money in the

meantime and that's what you come to

this channel for is to learn some

perspective and how you can pick up some

money in the meantime

that's what i teach okay so today

uh we we're seeing the short interest go

up we

also just saw a dip on the amc chart

and so for me this was like perfect

timing so if we go to the 5-minute amc

chart i

literally just executed this trade at it

says here 1337 eastern which is 1037

which is basically right here as soon as

i saw the reversal

of prices going back up i knew it would

become

more expensive for me to buy that call

back and close that position

so as soon as i saw that reversal and i

knew we were below the v-wap on that

trading line

i thought you know what this is a

perfect time to

buy back that call position that i sold

so i bought back the call position at a

dollar

and 98 cents so i bought the same 14

positions back so i bought a callback

and take a look at this i'll show you

the calculation here i just made

10 976 dollars now i know i mentioned a

couple seconds ago like 30 seconds ago

or whatever that it was somewhere around

11

500. my bad it was only a 10 976 dollars

slight little math typo there but now we

have it correct and again that's

corroborated by the screenshots i showed

i sold a call for 9.80 this is the sold

call

this is the money that i got uh i then

subtract out

what it cost me to buy that position

back which was

one dollar and ninety six cents leading

to a profit of ten thousand

nine hundred seventy six dollars in five

six seven days so in one week i made a

profit

of eleven thousand dollars on shares

that i'm diamond handing anyway

so i basically got a free eleven

thousand dollars with that move

now it's going to be something to pay

attention to right now amc stock has

been

fluctuating a little bit uh into in the

day

it did have at one point a relatively

strong movement in the day

i'm gonna go to the five-minute

candlestick so we can see this a little

bit better and then we'll also go to

trade view we can see on the five-minute

candlestick we're seeing

volume evaporate a little bit right here

and we are seeing a

downtrend within the day could be a

shorter term consolidation

however my big thing looking forward for

amc right now

and over the next two three four weeks

is really going to be watching for a a

resurgence in

volume which could potentially lead to

another

squeeze right now we're not quite seeing

that yet

however the day is not yet over on the

28th

we already have a volume bar on the 28th

that's larger than friday's volume bar

given that we still have another two and

a half hours of trading

i would expect our volume probably is

going to look a lot closer to

june 21st june 22nd where we're

somewhere around 150 million shares

traded

unless volume falls during the day i do

think we're gonna be over a hundred

million shares traded today

which is going to be good if we get that

cat that this continued push

you wanna you're gonna watch wanna watch

amc very very very carefully

i also am going to be looking at this

very carefully for

options trading personally i'm i don't

have any uh

short-term call options i'd be maybe if

i were looking at calls

if i were ever going to do calls

certainly i would go into

this careful i would go in

probably with 45 to 90 day calls

at the shortest term and i would use

that as a smaller portion of my

portfolio

or whatever i was willing to put on amc

and then i'd probably go with

jan 2022 call options if i were

really planning for this this squeeze to

come so for example i would stay away

from

anything uh sooner in my opinion and

it's not financial advice just

for entertainment purposes only i'd

probably be looking somewhere at the

aug 20s and uh

let's get to calls not puts there we go

so i'd probably

be over here looking at maybe a

forty dollar yeah forty dollar in the

money call

you've got some high implied volatility

here so if this volatility goes down

the value of these options is going to

get crushed so you'd have to be

really really comfortable that we're

going to see and a third sort of squeeze

sometime within you know the next two to

three weeks that's going to be something

to keep an eye on

now what i'm going to do is also go out

to jan

and i would say over here in jan 2020

you probably

want to look at also the 40s you've got

massive open interest here the implied

volatility is about 50 percent

less it's still very high at 148 percent

they're a little bit more pricey today

if we get a red day tomorrow you could

probably get a cheap deal on something

like this out here

personally and you know this i trade

with less than one percent of my

portfolio

less than one percent of my portfolio is

exactly what i trade with

and so when i trade uh individual trades

might only represent a quarter percent

of my portfolio

so by no means am i going uh all in on

on

any trade doesn't matter by conviction

level i will go all in though on

on long-term high conviction plays which

of course we regularly talk about

whether it's on the channel

or in the stocks and psychology of money

course link down below

so uh we do have a little bit of this

rotation here down on the minute chart

for uh this is amc calls so let's go

ahead and get

amc chart itself up there we go now

we've got amc

up on the minute chart kind of rotating

down here on the minute

if we go out to an interval of five

we're going to get a little bit of a

better view

on the actual day here let's go out to

five minutes there we go

this gives us a day view here on amc

rotating back down to roughly where we

opened

we did open pretty much flat did run up

about four or five percent

now sitting around that 57 level i'm

going to be keeping an eye on this

if i were to buy a call it probably be

over here

and i don't know that i would sell

calls at this point selling calls has

been very

profitable because the short interest

has been falling and the implied

volatility

hasn't been so you've been taking big

premiums by

selling calls which i know some people

hear selling call

it's like oh my gosh that's bearish it's

just a way to make money during a

sideways trading market

but with this cookie monster here on the

uh

short interest chart i would probably

caution against

new sold call positions

with this short interest increasing here

but keep an eye on volume so these are

some of my thoughts

uh we'll we'll see if i make any kind of

trade i'll make sure to send out alerts

as i regulate

it regularly they do and stocks and

psychology money that course coupon code

does expire

in two days and folks these are my

thoughts on

the setup for the double or the triple

on amc

uh sweets that is the third second or

third squeeze however you want to look

at it second recent third

over this year squeeze for amc my

thoughts thank you so much for watching

and folks

we'll see you next time

you