What's going on moon gang, we got ta talk about the newest stock market rule that is hot off the press. If you happen to be in amc or gamestop diamond hander, you're definitely going to want to listen up, because i think there's a fair amount of confusion about this new rule. Aka rule 801 make sure you stick around until the end, because also be going over. The most recent and up-to-date short interest numbers for both amc and gme alrighty before we hop into this, don't forget that i'm in no way a financial advisor a lawyer, i'm just a guy with an impeccable sense of duck, shirt fashion.

So with that being said, i'm sharing things to the best of my understanding and current knowledge. So if i get something wrong feel free to reach out to me and then i'm more than happy to correct myself in a future video all right, let's hop into it just so, you know i am filming this after the market is closed on wednesday april 7th And as of now, gme is trading at 177 and amc is trading at 9.86 okey-dokey, let's get into it. So here is the rule 801 that passed today, and i know it's a big confusion, because right now, if you've been following amc and gme, there's actually two different 801s that have been discussed and talked about, and this is the one that was passed today on april. 7Th aocc-2021-801: this is the one that passed today and it it kind of has an impact on the options.

Clearing corporation, that's the occ. Just so, you know, there's gon na be a ton of acronyms in this video and i'm gon na do my best to explain all of them, but anyway here's my current understanding of this rule, occ 801 and that's the one that passed today and it's definitely a Positive thing, but i just think, there's a confusion. People are confusing this with the other 801 and i think that's the one that's been discussed a little bit more on reddit twitter and youtube. So this is the one that passed and it's still a good one.

Basically, it's an update on this existing uh. I believe it's been referred to as the skin in the game rule. So, basically, with this rule being passed now official that if one of these big players defaults, those costs related to the default will be passed on to other members that rule passed today. Um i'm gon na link both of these.

Every link that i talk about in this video i'll link in the description below i implore you to do your own due diligence, but this is the one that got passed today. It's an upgrade on skin in the game rule. Basically, one big player default. Those costs associated with defaults, the default will be passed on to other members.

Obviously, this option's cleaner, corp, it's in the world of options trading and the settlement. This is the governing body that oversees any of the option settlement, and this is actually it does relate to this other rule, and this is the other, 801 rule the nscc-2000. This is the second 801 rule. This is the one that is not yet passed.

Nscc stands for the national securities clearing corporation, it's under the umbrella of the dtcc, which is the depository trust and clearing court. If that sounds familiar to you, we have been hearing a lot about the dtcc. Those are the same people that back when gme was first squeezing at the end of january, the start of february. They went to robin hood and they're like hey uh.

It doesn't look like you have enough money to cover. What's going on right now and then robin hood quickly scrambled to raise money and to lower their risk to lower their collateral requirements. They were like. Oh okay, we're just going to stop people from trading gme, dtcc, uh they're, the people who are it's just a clear incorporation for all these stocks and all these brokerages um.

So the other hand of that is the options clearing corporation so once again, 801 options. That's the one that passed it's a it's an upgrade on skin in the game, the one that i think has been discussed a little bit more relates to the national securities clearing corporation and this one's a little bit more interesting, and i get why people are more Interested in it, basically, this rule, which, once again it is not yet passed, allows the nscc to go basically go to all these big players and on a daily intraday basis, check the risk, and this is where slds, which stands for secondary liquidity deposits enter. So basically, it's just like another form of like hey. Your risk is getting a little bit out of hand.

We're gon na need more money. Let me give you a better example: i'm gon na completely make up some hedge fund names here. Let's call it um midi. Dell or better kelvin capital - let's call it kelvin capital mid adele, whatever one we're making up hedge funds as we go.

So basically, let's say that they're shorting a stock - i don't know you - can pick up the stock. Well, if they're shorting it and the stock goes up, their risk is going to start to get out of hand, especially in an instance of a massive short squeeze. So at some point, if they're underwater or if they're, really underwater the nscc now on a daily basis prior to do this to the best of my understanding, they were only checking on a monthly basis. So now on a daily basis.

They could be like hey, like. Let me make sure you have enough collateral enough liquidity to cover. What's going on because it looks like you're really really underwater, they have the ability now on a daily basis. If this rule passes to check them and then one of two things can happen, they could be like hey.

We need a bigger sld, which is basically just that secondary liquidity deposit, as it like just give us more collateral and either they have to fork over all this collateral which which eats into their free capital or if they don't have that money. The nscc can force um midadel kelvin capital, whoever you want to think of to basically cover their position, as in close, the short at a huge loss buy back in the market which causes um buying pressure. So once again, that is the nscc-801 rule. This one hasn't passed to my understanding as i'm filming this it's april 7th and they um.

Basically, people are reviewing it, adding their comments and opinions. They have to get those back. I believe to the sec this far friday april 9th and then once the sec deliberates on it. If they vote yes or no um, which i i have no clue, what way they're going to vote but whatever if they do end up voting.

Yes, i believe they have up to 10 business days to actually implement this rule, so there is a very real chance that this rule, the second 801 - could actually go into effect by the end of april 2021 and once again, uh. Obviously i will post these below. I want you to do your own due diligence. This is my current understanding, i'm in no way a lawyer.

I i implore you to read through all these articles, but basically the options thing. It relates to uh just a recap of. What's going on occ 801, it passed, it relates to options skin in the game. If one member defaults, the other people, have to cover the cost of that default.

This is the one where, basically, on a intraday basis, daily basis. The we're allowed to look into these big hedge funds and see what the risk is um, not pest, not passed yet, but it could actually, there is a pathway in which it could go into effect in april of 2021. Obviously, when there's votes on this, whenever we see any development, i will make an update video just to let you know what's going on, but this data one - i just don't want you to get it confused with the other 801. I know like just the fact that we're calling it the this is the one that you might have referred to it as the 801 bomb um this both of these are good for us.

I i don't want to kind of understate that both, in my opinion, are better ways for the financial system to rerun um and obviously take that with a grain of salt, i'm just a guy who wears duck shirts, but um. I'm almost surprised that they weren't running like this beforehand, so they're both good for us, but in terms of people getting excited of forcing these shorts, who are severely underwater to get out of their position. You're looking for this second 801 to get past, so that's what's going on right now with the basically all those acronyms i just listed, but now, let's uh, i just want to give you that quick update of, what's going on with the current short interest with amc And gamestop um right now. Today's changes, the amc, short interest.

It's estimated to be now above 20, the short interest change today. After today's training was uh an increase of 1.33, and just so you know there is roughly we're pushing 128 million shares on loan as in theoretically. Up to that, many shares could be shorted and remember. This data is from ortex.

They have about an 85 percent coverage of all primary brokers, so there is a decent argument that the numbers could even be slightly higher. Remember though, so, let's this is a floor. Let's just call it the floor, it's at least 128 million and just remember the free flow as in the shares that you and i can trade that total number for amc is around 400 million. So the short interest is pretty high and what else is high is the utilization rate.

Utilization is the percentage of all shares that could be loaned. How many are loaned uh and right now we're clocking in at 93, which is incredibly high. So amc i mean even just look at this trend from thursday march 18th uh we've gone from a short interest of eight percent and since then it's been nothing but up up up the short interest is going higher and higher and if we're paying attention to the Stock price, which is right here - it's just going sideways. I personally find that to be a bit interesting and we're going to see a similar trend in gamestop, because, with all these new shorts people have been selling to the market which puts downward pressure.

The stock hasn't been moving downward. It's just going sideways so right now, even with those that extra bearish selling pressure there's enough bullish pressure to at least keep it constant, so um with this trend like and it's going higher and higher, so really there's a decent uh. Mathematical theoretical argument to be made that, as the bears are increasing their strength, so are the bulls and that is actually being balanced out in not much stock movement. Of course, one of these days something's going to give and knock on wood.

Obviously, we want the bears to give way and we want the bulls just to run this higher and higher, just as uh to be fully transparent. I still have all of my amc shares all my gme shares and i have calls on both of them, and i continue to like my plan is just to continue to swing them because i just as of now, i'm not throwing in the towel, because i just Don't see us losing yet i i i think the trends in the data that i'm seeing are still pretty solid. So that's the up-to-date numbers for amc and in terms of gamestop um. Today the short interest did drop by two percent.

As of now the estimated short interest four games up, aka gme is around 24, obviously still high. The utilization is just under 50. Once again, that's just like out of the entire pie of shares that could be loaned. Uh 50 are being loaned right now, and our current shares on loan is right, around 13 million and in terms of gamestop the free flow is around 45 million.

So that's the important ratio to know there, but overall amc gamestop. I mean that same argument can be made. The short interest is sky high this and it's actually kind of trending upward um. So to me, the fact that the price level is staying consistent shows that, as the bearish strength is increasing, actually so is the bullet strength.

So same thing, we're just waiting for one of these sides to give way um with the short interest going higher and higher. I always need to remind you of this a high short interest in no way guarantees a short squeeze. All it tells you is that if this short squeeze were to occur, we're gon na see a greater magnitude in spike. In the end, the missing piecing to the puzzle that we have right now in both amc and gme is just good, old-fashioned, bullish sentiment.

We need buyers to step in to turn up the pain on these shorts and then that's when you see like a very volatile move upward and that can go from a short squeeze to a gamma squeeze and they can play back and forth and all that stuff. That we covered in previous videos but in the end, the short interest numbers, the utilization, the shares on loan for both amc and gme are where we want them. They're, looking good the magnitude relative to many other stocks across the entire stock market are looking good. The magnitude is high.

We just need that one little last piece of the puzzle, which is buyers to step in so overall. If there's any questions on these two different rules: 801 uh, the 2801s. Let me know in a comment below i would also love to know your thoughts on the most recent um numbers for amc and gamestop. So let me know in a comment below if you enjoyed this video, i would really really appreciate it if you could drop a like.

It just helps me out the youtube algorithm um. It would be even better if you could just share this out with someone to just kind of clear up some of this confusion going on with 801 and don't forget if you want to be a part of these monday to friday live streams. We look at the stock market all day or these update videos. The best thing you can do is hit that subscribe.

Button go over that bell, icon click on it and switch it to always. So you get a notification when i post any new form of content and also, as a final reminder, this training platform right here is weeble. You could use it for absolutely free for free trades and get two free stocks. All you have to do is sign up with weeble and then deposit a hundred dollars uh.

The link is in the description of this video and until i catch you next time for me duck shirt and chair best of luck in the markets. You.