About meI will move to another site. I have my own but you will find me on Twitter under the same handle. Introducing broker, like this one, do not want to provide a platform to discuss or reflect things. They earn commission on ur trades. Trade a lot and huge.
IWM Market Maker Sweet Spot Calculations
NOVEMBER 2, 2021
How do we get to the Sweet Spot
Derived from the amount of OPEN INTERESTS multiplied with 100 shares per contract times mid price gives us a good estimate what money is at stake and where the Market Maker will make the most money, or better said will lose the least! This is the spot where the market maker...
What to do in the next 6-9 months with existing risk factors?
Educate yourself to come to a conclusion.
Do not blindly follow "experts". In the current situation we are facing several risks to the stock market. I listened to a lot of so called experts. They tell you what sounds great, what you want to hear. Most of them get paid for being on the show even it is...
There are several factors in the market that raise concerns. Each of which could have a huge negative impact on the economy and the stock market. Lets take a look at it to clear our vision. At least that is what I am doing.
What factors could that be.
Thus, where to begin?
Following the Option trades and putting together an Excel sheet on a daily basis for AMC to get an understanding WHAT the numbers are telling you.
The trading volume was higher than usual. Yesterday about 180,000 contract and today about 190,000 contracts. Even though the apes could not break through the resistance level of $39-40.
This week was a sliding down the slope for AMC. As predicted it didnt go below $30. And it will not do tomorrow. It just dipped below 30 for one hour just to come back into the profitable range for the Market Makers.
Tuesday the trading volume with Calls vs Puts, was 136% Puts. The tide keeps turning.
Wednesday the trading volume hit 90% CPR, Call to Put Ratio....
I said yesterday and the day before:
"The Market Maker Sweet Spot moved slightly from $40-38 to $38-35. At $38-35 closing of the week it will have the Market Maker paying out about 5.6 million Dollars. At $33 it would be $11 million so they will stay above that and at $40 it rapidly goes up in costs for them. They will stay below that. Range trading tomorrow as...
A lot of People, "traders" dont want to hear it. But the Trumpets are sounding. Is this the retreat of the Ape Army on AMC? Can they mobilize $25,000,000 or come up with 250,000 trades tomorrow? 3 days and your lottery ticket will be OTM.
Tuesday update on the AMC Battle.
What's going on?
I was expecting a much higher trading volume for AMC. But it barely...
With a predicted closing of around 37-38 on Friday AMC shares rose higher on Call option buying today. The Put Call ratio is 0.44, which means for every existing Call option there are about 0.44 Puts options out there. The majority of people believe that this bankrupt company will rise from the ashes and go to the Moon!
The general trading volume was about 98...
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.
This company is revolutionizing bitumen extraction in Alberta Canada. Who ever worked in the oil patches knows that if Acceleware can make their RF project commercially work that the common SAGD extraction will be obsolete. This means oil will be extracted from the ground WITHOUT water and chemicals. Hence reduces lifting costs by 50%. It is like oil goes green!
Long term price target is $5.84 and I am short on AMC for that reason.
But I was hit unexpectedly due to the fact that the Market Maker Sweet Spot (The zone where most options will expire worthless) was around $35-37. Most of the options 100,000 Call option contract and 150,000 Put option contracts will expire this weekend. A lot of call option came into the...