Share this page!

CringleKitten Profile picture
Twitter logo
3 Jun, 4 tweets, 1 min read
(Part 1) The Options Clearing Corporation (OCC) with their sub-market regulators of the Foundation of Secure Markets, has sent a memo to all of their registered members (clearing members).

(Part 2) Every month following an OCC clearing fund sizing report, when a registered member is showing a deficit on their options account, they would have to secure a collateral to satisfy this deficit within a time frame.
(Part 3) In my latest teachings, each clearing corporation (CC) has their own members and rules via SEC. Every registered member under a CC (investment bank, hedge funds) must maintain a liquidity requirement to maintain, especially short/margin-based positions.
(Part 4) It is also a law that every bank must have a minimum reserve capital on the side to maintain their infrastructure and transaction-based operations.

• • •

Missing some Tweet in this thread? You can try to force a refresh
　

Keep Current with CringleKitten

CringleKitten Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @CringleKitten

CringleKitten Profile picture
5 Jun
(Part 1) Let's do some math! - $AMC

Based on the data reported to S3, there was a return of 1.4M shorted shares this week (1.6% of the total 88.2M shares sold short).
(Part 2) They covered 1.4M shorted shares while returning another 27.6M that they had borrowed for the sake of shorting but it was likely to be an awful idea due to risk exposure.

Now, we have an increasing amount of institutions prohibiting short selling.
(Part 3) If short sellers only covered 1.6% - the share price went up roughly 86%. If we're tracking this proportionally with the price increase per percentage point of SI covered going forward...
Read 14 tweets
CringleKitten Profile picture
4 Jun
(Part 1)

Prohibiting on short selling on $AMC:

- Jefferies, Citigroup, Bank of America

Prohibiting short selling on $GME:

- Jefferies

Prohibiting short selling on $MVIS:

- Jefferies
(Part 2) This is a phenomenon that is indicative that these highly shorted securities are extremely hazardous, based on risk assessment - requiring an increasing collateral requirement to maintain these shorts as potential losses are very high - if not guaranteed.
(Part 3) Forgot to add TD Ameritrade into $GME
Read 4 tweets
CringleKitten Profile picture
4 Jun
(Part 1)

When people are criticizing @BAMinvestor (a pioneer of behavioral analysis of the Markets - spent countless years on refining his field specialization - having a solid line of scholarly-based credibility)...
(Part 2) ...just because his PREDICTION analysis model was underperforming today.

Keyword is "prediction". His algorithmic model is based on quantitative data to let him conduct some advanced analysis which has been reliable and accurate many times over.
(Part 3) More accurate than the dedicated services I rely on or Fidelity's.

Predicting with a 80-90% accuracy on zones of strength and weaknesses for $AMC within a 10-min window is impressive.
Read 4 tweets
CringleKitten Profile picture
4 Jun
(Part 1) Featuring a discussion with @ShortTheVix1

I remember the days when $GME took off in January, it faced a negative % SI change and people thought the stock was being covered. But it wasn't the case and doubt snowballed the price action with massive selling movement.
(Part 2)

$AMC presents shows a similar pattern with a substantial drop of the SI with more shares being returned but the value of share on loans also spiking.

In laymen's terms, they have doubled down on shorts just like I said previously with the OCC notice.
(Part 3) The inflated OI in the option chains are increasing - suggesting short sellers are placing hedges, hoping to change the price movement and also acting as a "spoof" of the SI presented on Ortex. It is not 100% conclusive but it is likely the thesis.
Read 4 tweets
CringleKitten Profile picture
4 Jun
(Part 1) There is a sheer difference between being rich and being wealthy.

Giving credit to @profgalloway - someone who I greatly admire with his scholarly-based seminars and educated speeches.
(Part 2) We have many millionaires wasting a fortune to keep up with various expenses they cannot afford - such as paying mortgages on several properties, insurance / maintenance / loans on luxurious cars, sending kids to private schools, expensive healthcare bills...
(Part 3) ...paying alimony to your exes - They spend all of their reserve, if not most of it.

These types of rich millionaires are actually poor.

(Looking at you Nicolas Cage!)
Read 5 tweets
CringleKitten Profile picture
4 Jun
(Part 1) Debunking this - $AMC

People are worried about AA consorting with bad institutions: Citigroup and B.Riley Securities - which is a legitimate concern.

(Part 2) But I think it's an ingenious strategic move to help the company financially and actually the mechanics of leading towards a short squeeze.
(Part 3) With the current price movement, there is so much buying pressure that we're able to grab these millions of shares like candy.
Read 11 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!

Like this author's thread?

Get emails when @CringleKitten has new unrolls!

Check out other threads from @CringleKitten!

Read all threads by @CringleKitten

:(