The trading volume was cut in half today and the steam is out. Even though the Call Put Ratio dropped to 0.66 today, which means for every CALL Option out there are 0.66 PUT Options out there. But we also see that 90% of the trades today were all within a one week horizon.
Gamblers. Just put your money there and leave the table. The bank takes it all.
There are about 168,000 Put options to expire this Friday and about 262,000 Call option. I also will say that when a Call option goes one Dollar into the money, there will be no profit for the option holder. Very little if at all.
The huge Call option Barrier is at $40. about 35,000 contracts the Market Maker do not want to pay out and hence they will try to keep the price below that. Remember the Market maker also makes money when your calls actually go into the money. They have their positions covered, they bought the stock, the underlaying. When the call goes up and get sold back to the MM, the MM sells the shares for a higher price. He makes money on commissions and wins on the slippage. If the option expires worthless he gets the commission, no slippage but holds the stock. When you start buying Calls on Monday the Market maker already has the stock at hand
There are also about 22,000 Put option sitting at the $40 level. All of them will expire and since the Call options numbers are bigger it is less risky for the Market Maker to stay below $40. And even at 38 or 39 Dollar closing price tomorrow there is nothing lost with the Put options that are one Dollar in the money!
Thus my prediction is the price will stay at the $39 level and might slide to 38 by the end of the trading day.
And all of this depends if the apes can get their money together and chip it all in to run the price up so that their other bros can profit from it. But in the market everybody is your enemy. Dont wait for help. And today, after two strong trading days on Tuesday and Wednesday, the trading volume dropped by 50%. This is an indicator to me that the Market Maker are ready for the battle and have an excessive amount of shares. They didnt have to load up today. Their guns are full of powder. They will haven even more on Monday, which they will sell to the market and drop the price slowly.
The biggest mistake the Ape Army is doing betting on short terms. To the Moon, Bro!! All on board. if you follow the Option exchange then you would know that all those bets are gambler bets. Short term. They go off in smoke in a week.
Next week so far, there will be about 10,000 call option sitting at the $40 level and about the same amount at the $50 level. Thats it. Very little.
And there are 6,500 Puts sitting at the $20 Level, which might be insurance, married Puts. They have a 2 months expiration left.
Lets see Monday and lets see how it works out tomorrow. Unfortunately I cannot attach any images. Though, that means do your own research.
Call/put = 0.66 = 2/3 ..for every 2 calls there are 3 puts....to kill the puts, it has to go up...
Option_Crusader
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The Market Maker already owns all your stocks. If you buy Calls they do not buy the underlaying as long as it is trading in range. It will not drive the price up too much, maybe slightly. If you bought the stocks itself, yes that would buy the underlaying since you do not buy the derivative! But for 100 stocks you would pay $3,500. The ATM call option cost $1.50 x 100. That is a big difference. The apes dont have the money to buy the stock! Also the MM likle the range since your calls and puts, 0.66 expire every Friday. This Friday there are about 120,000,000.00 Dollas changing hands, you lost and you feed the MM and with your weekly buying the same thing you feed your broker. All of them love it that you always come back with your feel good and buy more cocaine. The apes make the brokers rich (trade as much as possible and leverage as possible and big as possible), because they take AUTOMATICALLY the opposite trade. And since 90% of retail traders lose, they have a winning streak of 90%! And this is on top of their commission!! AMC is brokered by Goldman and Sachs. They love AMC but for another reason. Thus as long as the Apes cannot organize the March on Rome, which means dedicated apes buying the stocks in excess of the daily average for one or two weeks the price will NOT go up. Also there is no more surprise in this attack. the MM are prepared!
And you making two mistakes in your Call/Put Ratio = 0.66.
The first mistake is understanding ratios. There are 0.66 puts for every call. For 100 CALLs we have 66 PUTs. The majority in trading is with the calls until the ratio grows above 1.
The second mistake is that this are trading ratios. This is NOT the ratio of the OPEN INTERESTS. It only tells you that they traded twice as many calls than put. Did they all go long? How many calls where sold back to the MM in this ratio? how many of the bought calls are part of a Call Credit Spread? It doesnt tell you. The open interest is more accurate. You can buy and sell a call twice and it will change the ratio! Please consider this.
I am not allowed to put images here unless paying myself to make this site attractive and I refuse. To see the full imaged article go to
hedgingstocks.blogspot DOT com/2021/07/amc-settled-at-37-as-predicted.html
I hope that helps