TLDR; Long Whales are working the Max Pain Channel; IV consolidation is approaching levels last seen before GME rose from $4 to $350. The Low Volume and Sideways trading is aligning the stars for a Gamma booster, into the short squeeze launch from a $1,000 platform. Enjoy this beautiful calm before ignition; sleeping soundly tonight, knowing Kenny G isn't.

*******

Last week I published a report on why Long Whales are orchestrating this channel $175-198 around Max Pain in options market and how it is designed to bleed the Hedge Funds of the funds they have left: Our Whale is Suppressing Volatility to Bleed HFs -- Max Pain Explained

The strategy is clear, to me, based on the amazing and tireless work of fellow Ape DD's in the last week to explain the behavior of the Hedge Funds to delay their shorts while playing the deep ITM calls. This is coming to an end soon, based on DTC 2012-005 (if this is news to you, please check out Legal Interpretation of the Proposed SR-DTC-2021-005 <-- this hasn't received the exposure I think it is deserving of, props to u/BigBrainBets)

The long whales (and Blackrock, I'm convinced, at this point) aren't working together -- that would violate trading rules -- but they are surely aware of the long GME benefit of keeping GME priced in this channel (175-198) until things change. All you have to do is watch the price, and every time GME works to leave this channel, there is a powerful force pushing it back into it. Not much trading will send the stock up or down a few bucks, but try to leave the channel and it's a massive force pushing us back in. This is akin to having the snake (Kenny G) by his tail, as he tries to squirm up the Call chain or Down the Put (I mean poot) hole. Desperate to find any mechanism to slow the bleeding and survive another week. The last 8 trading days, this game of his, has stopped (and the deep ITM calls paused the last two days -- no doubt due to HF lawyers investigating 801/005 implementation/enforcement edit2: seems they have continued for now), we have leveled, flat (a beautiful serene calm, before the storm -- it has me excited, and I hope to show you why). It's a sign of the dwindling capital on hand for the shorts, and a shining beacon onto the lack of power they have left to manipulate GME to serve an options play aimed at pushing their shorts down the road and raising enough capital to keep the game going, as they do.

Why Do Long Whales Want IV Down?

Take a look...

​

follow the hot pink

This chart I've illustrated speaks for itself. There are moments, when stars align, and the variables are just right -- we're headed that way, and it's not by accident. Everything is happening, on purpose and with intent. We're entering a new phase. The optimal launch phase. It may last days, or weeks.

Look, there are plenty of catalysts for the Short Squeeze, and we have seen plenty come and go (rip 3/19 - you had me so jacked to the... but my jack'dness is still growing; I see how much more powerful this is becoming, each day). Digesting DD, by the data, seeing this all unfold. And I hope by now, Apes realize, the longer this goes, higher it goes; the stronger it becomes. The waiting that is.

I'm full of analogies, and one I'd like to throw out there, in this situation, is a compression spring. See we have plenty of things that could set of the short squeeze:

- Kenny G running out of money

- SEC passing DTC laws

- Gamestop recalling shares (voting)

- Gamma Squeeze (without Robinhood buy button vanishing as it climaxes)

Among others. But also there are plenty of variables at work here that can boost the launch, maximize the height - all of them are aligning. Consolidation at $180 with IV lowering to levels we last saw when GME was $4 -- well that is insanely bullish! One of the catalysts is Gamma, which has been off the table for quite some time, due to the ridiculously high IV (implied volatility) numbers. (seriously, go read my linked "Our Whales" post above if this IV thing is confusing; I scratch the surface of why it's important there). Gamma is like a free ride to higher price, before a short squeeze even gets started. It's the options chain forcing market makers to push our price higher to cover gambling debt from Puts (shorts). Gamma requires a loading of Calls to be bought, so many, that Market Makers have to start positioning (buying) shares to ensure they have enough to execute the Call chain. As it cascades to higher and higher prices, so does GME's stock price. This Gamma squeeze is usually balanced by puts, but when stars align and people see catalysts, hype builds, and so do massive ATM Calls, and slightly OTM Calls pulling GME upward like a tide building into a tsunami.

Sure... a squeeze could launch anytime, and shorts get stuck, fleeing. But as a wise man once said...

https://preview.redd.it/fv5qfn97utr61.png?width=1792&format=png&auto=webp&s=3d7d5541a51488a35f9f25e083d8f0c5f9b1b4d7

And shorts are destroying themselves. I think they are confused why we haven't launched yet. They don't sleep at night, I can assure you of that. Hedge Funds have been destroying themselves with their naked shorts -- digging deeper, that hole from which they can't climb out of.

Why do they do this?

Because they are already done. Why did Bernie Madoff keep floating his Ponzi scheme higher and higher, despite being aware it would end someday. Well, he liked his yacht, he wanted to keep it longer. He didn't care if he destroyed more and more along the way. the HFs, in this case, don't care if they bring the whole system down with them. If they are going down, and they can survive another week on their Yachts... well that's better than prison. These aren't moral beings. You can't apply logic, rational, ethical thoughts to understand how they behave. Give these rats, another dead end to run down, and they'll just keep going... till they run into a wall.

The Spring Compresses

... as we move sideways, the variables optimizing, for the perfect launch. The lower IV is, the more able retail and institutions are to jump on the Call Chain fueling the Gamma (stage one booster). See the Long Game powers (Long Whales, Long Institutions) of which we (retail) are a pawn in this game of chess (we secure the floor - we literally give them the assurance, that they can mock the shorts in this channel, because if a dip appears, we'll pile on to help the Longs get us back into the optimal channel - to bleed the shorts of money). The long team has been doubling up on the notion of allowing HFs to hang themselves with the rope they've been whineDing. Let me be clear, how important Apes are. We do the opposite of what HFs expect, when they deploy any measure to drop the price, and instill fear into the market. More GME gets bought! We aren't emotional investors. Retail is supposed to be stupid, and emotional... we are rational. That crayon that I stuck up my nose... call it a lobotomy. I feel the opposite of fear, when GME goes down... I feel excitement.

When GME drops significantly (see that $115 dip Q4 Earning release week -- or Mondays' drop to $165 where the media jumped all over an apparent "sell off" hmmmm), we see the Media manipulation, and we get exciting, antsy. This is when I buy more. Because I know the media is playing the general public. I know Gamestop is a deep value play at 13B market Capitalization (See another post I contributed last week: DD: Gamestop Price Analysis -- still a Deep Fucking Value under $550 )

The media knows it can't play us.

You want to see a Gamma Squeeze launch us to $1,000 before the short squeeze even gets started on those margin calls for a 1000% SI float (conservative estimate here)... just watch what happens the day the general public catches wind that weekly $250 Calls are selling for pennies on the dollar ($0.85 last I checked) due to that beautiful flat line fueled IV suppression. (Edit 1: I'm not suggesting anyone here buy 250Cs... point is, retail gamblers who notice the Gamma potential might want to throw $85 on a chance to ride 100 shares to $100M each - they'd be less likely to if IV was higher)

So why do they keep doing it?

They are scared to death of the masses catching wind of what we know. We are waiting, till that day comes. Patiently. Eating crayons.

Stay safe out there. Love each other. This is a beautiful thing to watch. History, playing out in real time.

*******

This is not financial advice.

I don't know how the stock market works.

I'm an idiot and don't know what I'm talking about.

Any names associated with real life people is by coincidence only.

This is pure fiction.

Any reference to "we" is simply an acknowledgement of my self diagnosed schizophrenia.

​

*** Edit 1 *** Clarifying Calls above

*** Edit 2 *** addressing deep ITM calls above

*** Edit 3 *** I've gotten a question or two on Max Pain for next week. It's abnormally low $135 as of this edit. That's because of an abnormality in Puts purchased for next week, and will come up to the $175-187.5 region Monday. [Theory] I have speculated that a large Put purchase in the 20P region may be a plot by HFs aiming to scare "not a cat" into executing his 500 12C (he's too smart for this though)... it doesn't take much to dump a huge number of puts into way OTM Puts (like 20P), because they are so unlikely to happen. In the case of GME... $20 (or a $1.4B valuation for GME) is laughable. They have half that, sitting in cash. Not to mention $2.1B in sales in Q5 of last year. This large Put purchase could have been to skew the Max Pain marker (now that we are looking at it) for next week. On Mondays Options players usually load up on Calls/Puts for the weeklies in high volume, so that's when you see legitimate Max Pain points establish.

*** Edit 4 *** The beauty of that price channeling... on such low volume (usually an environment were massive swings can occur on a tiny nudge). [Price is moving below the 178 channel, no problem. Just a little nudge back up. Opp...$180... not so much... ok back to level...] this isn't normal. It's so beautiful to watch :)

https://preview.redd.it/k2iszw4iutr61.png?width=819&format=png&auto=webp&s=48ee4afb22fc905b73e0e3567b5e999472828f99

*** Edit 5 *** Market close update, less than 100K total traded volume in the final 5 minutes combined. Only 37K volume in the final minute. Only 4.6M shares traded hands today. This is Twilight Zone material right here...

*** Edit 6 *** Adding in an underrated post by a lawyer - his interpretation of DTC2021-005 (linked above and here: Legal Interpretation of the Proposed SR-DTC-2021-005

*** Edit 7 *** tried editing on my phone and the formatting got messaged up (photos disappeared); bringing it all back up. Fixed: Ok images are back in this post... never doing that again.

*** Edit 8 *** I see a handful of questions/comments saying in one form or another that bleeding HFs might be against Apes interest. The implication, stated or implied, is that HFs running out of money means we get less. This is false. I will address this (and the options chain) in a more detailed post soon, but the short answer to this is that the DTCC is insured to cover the losses that can't be covered by an insolvent hedge fund who can't make due on their debt obligations. Basically, Citadel with cash left to mess things up, does more damage to the short squeeze, and Citadel bled bone dry. I'd rather have the computers from the Clearing House automatically sending buy orders to fulfill debt obligations, than the HF delaying or putting off paying those obligations themselves in real time. The DTCC is insured in the 10's of trillions. Forgive me for not knowing the exact amount off the top of my head, but it's something like $35T, or $67T... That would take Gamestop's valuation to 30x Apples. Well over $1M a share.