So a lovely little aggregator hit number one on stock. Twits today held its place for number one on Reddit, and if you look at the most actively traded stocks today by volume, a little aggregator made it to the top three. I only have one word for you, outer boy and we broke ground deep deep into the sixes today. a day before a huge amount of in the money call options are set to expire around the five and six strike prices.

Coincidence. Who would have thought this could happen? I don't know, folks. I want to violently give you my take on what happened today and how that projects what's going to happen moving forward? Is this going to skyrocket further? Or is the play over? Is it time to sit under a tree and get some outer shade while drinking some adder aid? Are we about to see an outer fade? We will discuss exactly that, but as always we will be starting with an update on the overall market in place. Okay, so Marquette apparently people like stocks again.

Today You got the Sleepy Dow up one percent, the S P up one point one two percent, and the Nasdaq up two percent. I feel like the tech sector is run by bipolar parents. One day they wish the tech sector was never born and the next day it's the golden child. It's really a beautiful process and almost a waste of time to even commentate on.

Of course, right now you know what we're in. We're in a short-term traders market. Lots of opportunity in the volatility and lots of opportunity in Catalysts. One that you'll notice appeared on our briefing again this morning was Varue, and the Veruvians were very happy again.

Veruvi Varu broke back into an upper direction today after a breather yesterday. So why did I brief on it again? We were just talking back on Monday about the need to lock in profits after a successful run from like five to 14 bucks. And then yesterday, we were talking about how it got disqualified with a break back below our downward directional Sma. So why did it appear on the briefing again? Well, I included it because I saw proof of concept in the pre-market with new momentum which had caused it at that time to once again break back over our red directional Sma line and retake an upper direction.

I was also seeing the media praise its coveted drug success, which any sort of attention can drive a lot of hype and capital into small cap stocks. But really, what was special about Varue and the Varuvians was on the options chain. If you head over to the options table, it had a very similar dynamic to Atra, which we'll discuss later, but it had a very, very similar dynamic to Azure, if not more extreme, where if this had rallied back to previous levels all of a sudden, you'd have all of these contracts set to expire in the money tomorrow at 12 5 and 15, and potentially trying for a moonshot to 17-5 which is the biggest held call option right now. So you have this dynamic where if it did rally and retake its previous runs all of a sudden, you'd have this dynamic where market makers would subsidize your run higher, having to hedge in order to stay neutral before they have to close out those options.

But what I didn't see coming was this analyst upgrade from Oppenheimer towards the end of the day, which said Varu could hit 36, which was kind of the perfect timing, especially if it causes again the 17 strike prices to get hit. So yeah, pretty fun day for the Varuvians. The other case study from this morning's briefing was Kldo. so we briefed on it 30 minutes prior to market open and it had a quick near double at market Open before fighting out and breaking into a downward direction.

How did we find this? and why did I like it? Well, once again, I saw proof of concept in the pre-market aka it had already shown ability to get interest number two. The setup was already fit for an over-reaction play. The company announced something that's pretty much the worst thing a company can announce. they set their season operations and they stocked up massively on that news from 192 to 14 cents.

Which I mean, it makes sense that it would drop that much on this news. I'm not saying it doesn't, but when you have that kind of drop, you often get arbitrage opportunities of people trying to play small rebounds that could end up being doubles or triples. One of the most famous examples is that 2020 Hertz trade again one of those opportunities where if you didn't have clear entry and exit plans, you would have just lost all the gain. clear entry and exit confirmation, validation, stop loss.

Whatever it is, I don't understand why people want to get stuck holding a company that literally just sees the operations. But anyways, this is the full catalyst section. From this morning's briefings, we had six catalysts and one warning on Sst. That leads me to the ticker of the hour.

Adam's run this past couple of weeks has been beautiful. It's like an elegant piece of art. I wish that I could hang it on a wall and just admire it all day and night. Don't you? Hmm.

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Learn more about investing and diversifying into art by going to Masterworks.org ziptrader, or by clicking the link in the description below. Thank you Masterworks for sponsoring this video. Now back to the content. Okay, so Atra Now One of the big reasons I cited yesterday for bullish on the outer setup towards the end of the shortened week was because you have all of these call options that are going to be expiring on Thursday, which is now tomorrow.

and if the attributor held above five dollars, that means that not just the four dollar strike price or the 450 strike prices and everything below that would expire in the money, but the Big Daddy, the Big Papa of at your options, the five dollar strike price calls would expire in the money 20 196 contracts which is more than The four and Four fifty set strike price options combined. So if after held above that, you have this cascading effect of all of these options suddenly being in the money, which from a market maker standpoint, had a very, very low probability of happening when these options were written and as most of this week progressed. So what happens when you have a big move like this, where you're in a dynamic where low probability call options all of a sudden have a very, very high probability of being in the money? Well, market makers need to quickly maintain neutrality. So to hedge, what do they do, number one is they buy a certain number of shares or a combination of other maneuvers like buying further into the money call options.

You also have this dynamic where if market makers had rapidly sold call options without having adequately hedged and the stock price had rose rapidly well before those options get exercised or before they expire, the market makers are going to have to rush to buy some shares to fulfill those, which is almost always fine. Maybe it creates a little buying pressure, but the problem with Atru is that shares are super super tight. If you want shares, you got to bid up the price a lot. Utilization is 100 cost to borrow fees make gas prices look like a walk through the park and the stock has already been lent out and lent out to oblivion.

increasing the chance that market makers rushing to buy shares would have had an outsized impact on the share price, and we saw this dynamic to some extent play out last week as well, and the game has shifted heavily upward and you've seen some big retention of value which most shorts did not think would happen and the market makers didn't think would happen at least the algorithms. All of these call options, even as low as 4 and 450, were not expected to be hit and expire in the money on Thursday. So what ended up happening today? Lots of stuff happened. The rally today drove the five dollar strike call options deeper into the money and that drove a decent amount of exercising.

We've now dropped from 20 196 contracts to 16 985 contracts for that five dollar strike price. Now, remember, if you're in the money on your bot call, you can decide to go to the gym and exercise it. And what does the market maker have to do? Well, the market maker has to find shares to fulfill your contract. You could also simply just resell the contract to somebody else before the expiration.

But today, we did see some exercising. and the exercising of options at these higher prices puts pressure on market makers to what chase the stock up in order to continue hedging and stay neutral while also delivering some of the shares that they probably already under stacked to people who had had these call options at higher strike prices. On top of that, this morning, what you saw was the probability of after holding above five dollars into expiration increased dramatically, which meant that the short sellers were forced to further hedge on top of again delivering shares to exercisers. so you had both an increased need to hedge at the same time where people were redeeming some of your previous hedges.

And in totality, I would argue that today's rally to 664 was a result of a combination of a Gamma squeeze and a Fomo rally as well as some Momentum traders piling in on top. You look at this overall. When we originally called it out on Monday the 4th, when it was at 250 a share, Probabilities of this continuing momentum into a broader risk off environment were close to nothing. Market makers had to adjust again and again as this rallied and the liquidity situation on the short side has made it so much more difficult for them to do so, which has fueled a lot of these little mini Gamma squeezes that keep happening week over week.

But if you want to know what is going to happen tomorrow, look at what happened towards close today. after that 664 run, it started dropping. Reasons for this, well, think about what happens when you exercise a call option. The call option gets a six pack and goes out and flirts with put options and hopes that he doesn't strike out.

But when you exercise a call option at its core, what happens? Well, you receive underlying shares at your strike price, but if you are exercising a day before you have to prior to expiration, odds are strong that you're simply not interested in continuing to have a bullish position in this and you want to lock in your profits. So what happens while market makers have to rush to give you the shares and further hedge themselves? We went through this. but then shortly after you decide what? Well again, you don't want to have that bullish position anymore. So you're going to go and you're going to dump those shares onto the market.

That I believe is what catalyzed the downtrending and sell-off towards market close today. Now if you do the math on how many options were exercised today throughout the options chain wasn't enough to drive the entire drop, but it was enough to catalyze it. especially considering the liquidity issue here. Once you've started dumping tons of shares onto the market, all of that massive accelerating buying pressure that has to keep bidding and bidding up a shortage of shares all of a sudden finds shares to buy and then the price starts going down and then you spook some of the momentum traders.

Now, if you're playing three-dimensional chess here and you extrapolate what happened today and think about what's going to happen tomorrow. If I had a spit bullet, I would say that net and in effect it's going to be a breathing day for the stock, and probably a substantial breathing day. But there's still incentive for markets based on where this retains its value if you go out another week. the most concentrated call option isn't the five dollar strike price.

it's the 3.50 strike price. Which means as we enter next week, if we are in the fives, you're now putting pressure on the market makers to once again have to hedge for a higher probability of the four dollar strike price, the 450 strike price, and the five dollar strike price being hit, and perhaps even the six. So if you're asking whether I'm still bullish on the setup into the next week, the answer depends on whether or not this can manage to retain five or six dollars. But the short-term Momentum in Gamma-squeezed talk kind of misses the bigger picture with Attur With the bigger picture is that with Atra, you have a stock that is getting crushed by the shorts, So sure over the next week or two your prices will be driven by many of the same considerations that drove them the last two weeks.

But the big potential carrot at the end here is that short squeeze. Most stocks that people expect to short squeeze never end up squeezing, they just rally because people are buying them slightly more of them have mini Gamma squeezes as market makers never anticipated the runs that they do have Right now. you're in this rare situation in this market environment, at least where you've had several uptrends that then breathed and then uptrended again and then breathed. That's pretty rare, and if you look at most trades, they never make it to this point and fewer make it to the next point, which is staying relevant enough to have a massive squeezy mcsqueeze on the short squeeze level.

So in the short term I mean there is incentive for this to go higher if it holds different retaining levels. But if you're looking at it from a two to three to four week standpoint, this momentum adds up very, very quickly. But at the end of the day, folks always remember that aggregator's going to add a gate. I said this on Sunday and probably last week as well.

But if you're up 50, 60, 70, or even 100 on this, don't feel bad and apologize about taking profits. If you're somebody that just likes to trade the short-term momentum day-to-day don't feel bad about doing that either. At the end of the day, you and only you will be rewarded or punished based on your trading decisions. Every new hype stock will go down eventually, so you always have to make sure that you're protecting yourself and keeping expectations.

reasonable. Trading Hype stocks is kind of like musical chairs. You don't want to be the one stuck without a chair anyways. folks, have a good rest of your day that concludes today's video.

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