#AMC #GME #TSLA #KOSS #OCGN #MEMESTOCK #MOONING #L2BU Part 2 Skin In The Game - We were talking about the importance of the clearing fund...here is what it is used for "The Clearing Fund may also be used to make good losses or expenses suffered by the Corporation or losses
suffered by the Clearing Fund resulting from borrowings pursuant to the authority in Rule 1006(f): (i) as a result of the failure of any Clearing Member to discharge duly any obligation on or arising from any confirmed trade accepted by the Corporation, (ii) as a result of the
failure of any Clearing Member (including any Appointed Clearing Member) or of CDS to perform its obligations (including its obligations to the correspondent clearing corporation) under or arising from any exercised or assigned option contract or matured future or any other
contract or obligation issued, undertaken, or guaranteed by the Corporation or in respect of which the Corporation is otherwise liable, (iii) as a result of the failure of any Clearing Member to perform any of its obligations to the Corporation in respect of the stock loan and
borrow positions of such Clearing Member, (iv) in connection with any liquidation of a Clearing Member’s open positions, (v) in connection with protective transactions effected for the account of the Corporation pursuant to Chapter XI of the Rules, (vi) as a result of the
failure of any Clearing Member to make any other required payment or render any other required performance, or (vii) as a result of the failure of any bank or securities or commodities clearing organization to perform its obligations to the Corporation for reasons specified in
paragraph (c) of this Rule 1006. " Did you catch any good phrases in that useful rule????? I caught Borrowing, Short interest, Failed to delivers, liquidation of positions, payment failure, and protection transactions. I wonder why this is being amended...So now you know what
it's used for lets talk about what it's changing So the Waterfall Calculation that we talked about in part 1 I'll do a recap :

Previous Equation: Losses (L) + Margin + Clearing Fund Contribution of Default member + Excess Capital from OCC (LNAFBE = Liquid Net Assets Fund Bal.
Equity) + Clearing Fund contributions of Non-Default Member.

New Equation to deal with liquify shortfalls and Losses = Losses (L) +Margin +Clearing Fund Contribution of Default member +Minimum Corporate Contribution + Excess Capital from OCC (LNAFBE) = Residual/Remaining
Remaining Balance. To net out the remaining balance if any we will take the (Remaining Balance) + Clearing Fund of Non Member and Executive Deferred Compensation Plan . So this equation added another 15% of additional funds just in case one of or uses actually happens and then
they need to have my money at the ready. So lets talk about the 3) Change - How would the OCC determine if LNAFBE for the purposes of contribution more than 110% to cover default losses and liquidity shortfalls? First it would provide for the calculation by using it's own
undated financial statements immediately before or after the loss or deficiency minus any amount equal to the aggregate of all refunds made or authorized. This change is tells us 1) that the OCC will never let it's Liquid net Assets fall below 110%. 2) The funds being set aside
it are not commingled with other items so it's restricted cash. So the fund should never really run out of cash. At least it hopes it doesn't. The Fourth and Final rule change is to Replenish Minimum Corporate Contribution. So what is this about...The OCC has 270 days during
which the minimum corporate contribution would reduce any unused portion of the minimum corporate contribution. Each time the OCC had to bailout a member because they defaulted or one of the many incidences occurred under the Rule 1006 it would trigger a new 270 day rule (9
Months). This period of time is used to make up the additional 10% of it's Liquid Net Assets Fund Balance. Okay So we've gotten through the rules now how do they apply to me and why should I be concerned.

If your in the options market then you may have run across the battle of
the greeks aka Theta, Vega, Delta, and Gamma. For the purpose of this tweet and the YouTube video I'll talk about Theta risk measurement tool. Theta as we know is the rate of change between the option price and time. More or less how options decay over time.
Okay so what about theta is so important. Here are the General Rules - so get out a pen and paper I'm about to take you all to school... This is important for you to remember because you will need this for the ending of of either Part 3 or part 4. I hope this won't take four
posts but we will see. 🤞 Remember what we talked about before and remember what we are talking about now this will help us in our defeat of the HF and MM. So Let's cover some Definitions:
Long calls and puts are and will have have a negative theta.

Short Calls and puts will have a positive theta

Zero Theta means that the option is not eroded by time decay.
Call option - is a contract between a buyer (option holder) seller (option writer) This gives the holder the right to buy but not he obligation to buy shares of the underlying security
at an agreed upon price.

Okay this is nice but please get to the point already. Getting there Rome wasn't built in a day lol. Let's talk strategy. Why are you bringing this up....Because understanding Theta and the strategies therein will help us figure out next steps.
By next steps I mean lets look at how these strategies are used by both us and HF/MM. I'm going to just give a brief overview as there is a lot to unpack here and I don't want you all missing the forest for the trees. so Lets talk strategy:
Long Call Strategy - that you or me will buy the option and assume the role of the buyer, essentially allowing us to buy the stock at the strike price. This type of strategy is used by those investors who are bullish. assume the role of the seller (option writer).
Short Call strategy means you assume the role of the seller (option writer). You sell it before you buy it. This is important as you've now switched the transaction around. As you now make money only if the call option price drops prior to the expiration. Benefits are you get the
you et the money into your account immediately. Okay that is the end to my tweet limit Part 3 on the way. @threadreaderapp unroll #Options #ShortSqueeze #Stonks #Market #Stocks

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More from @live2beingu

9 Apr
#AMC #GME #TSLA #KOSS #OCGN #MEMESTOCK #MOONING #L2BU Part 3 Skin In The Game like I said in part 1 I will post a video of this today. So that way I will walk you through each part and what it ultimately means but I wanted you all to get the general gist of it here before I spoke
about it on my YouTube channel. So I digress lol!. Continuing where I left off in regards to short call options....It is important to understand if the call option is higher than the strike price at expiration then its in the money. This means that the person who bought the
option from you will expect to sell shares at the entire strike price. If the stock does a gamma squeeze then this strategy goes to the graveyard as you will have to cover the contract. 👀 For example theoretically thinking as a HF/MM a share of AMC @ 9.90 you think is going to
Read 23 tweets
9 Apr
#AMC #GME #TSLA #KOSS #OCGN #MEMESTOCK #MOONING #L2BU Alright folks, so the moment you've all pretty much been waiting for the the SR - OCC - 2021 - 801 rule as it stands IF THEY HAVE "SKIN-IN-THE-GAME"
There is so much to unpack here and I'm going to solely cover one part of the rule. I will also post the video on this after this is posted. So here we go. Basic Structure we need to understand is that the SEC is at the Head of the two organizations sitting underneath it.
On one side you have the OCC and the other side you have the NSCC. We've talked about and discussed for months the NSCC rules and how they apply to securities. We've gone through the NSCC 801, 005, 004, and the 003 rules. Now we're getting to the point that the other branch of
Read 25 tweets
9 Apr
Look at that Form? Lets talk about that LOP via @YouTube
Now if you don't want to press the link I understand. We will talk about it here. Lets talk about the Letter of Security Possession or better know as LOP Form. first of all this form is not a ruling as their is no SR-(Governing Body) - YR- Code written on the form itself.
Second, what is the purpose of the form? The firm on it's face has to deal with underwriting? What is underwriting? It is the process by which a bank/agency raises capital for a client from investors in the form of equity or debt securities. Underwriting is mostly used with IPOs
Read 17 tweets
7 Apr
$AMC #GME #TSLA #OCGN alright folks. Good morning everyone I hope and trust you all are well. Before I pass on the Ortex info for this morning I’d like to say this - remember why you are in this journey as the road ahead is not easy find the strength n courage you need to push
Forward to our goal. We are all onto something big. Oh I almost forgot... be careful of folks interpreting rules that are not researched and vetted thoroughly. Lol ok on to more important news pay attention to AMC and GME over next few days I have a feeling we are gearing up for
Another show down. Good or bad just know I’m on the front lines with you and I’m rooting for us all to win. Have a blessed and beautiful morning. Ortex data is below. #AMC #GME #TSLA #OCGN #stonks #mooning #OptionsTrading oh and just so you know we’ve had a crap ton of weird
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5 Apr
#AMC #GME #TSLA #KOSS #NAKD #SNDL #NOK #BB #BBBY #CALLINGALLMEMES #MOON #SEATBELTS #HOLDERS #STONKS #STOCKS #SLAPTHEASK Part 3 of the time to come home piece.... I told ya'll this was long ...I probably will do a video to explain it on YouTube but wanted to essentially get this
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combat retails buying power. The DTC knows that at some point they will have to be margin called for these deals. The stuff is already hitting the fan. I predict that more and more HF and MM and banks will still bite the dust in the coming week. Do not think for a second that
Read 14 tweets
5 Apr
#AMC #GME #TSLA #KOSS #NAKD #SNDL #NOK #BB #BBBY #CALLINGALLMEMES #MOON #SEATBELTS #HOLDERS #STONKS #STOCKS #SLAPTHEASK Part 2 of the Recap tonight "Time to Come Home" - They have now made the rules to indicate three things. 1) We will charge you the difference between your
short position and the volatility of the market. You will need to pay up immediately. 2) The NSCC showed us that we have a liquidity issue when it comes to these stocks. Liquidity in accounting means that you don’t have enough current assets to cover short term obligations and
the other assets you do have are not that is translatable into cash. It’s like if I have 2M dollars between cash and investments but I have a huge Fixed Asset that wont be sold immediately to cover whatever short term obligation should I get called out on it aka margin.
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