Our Whale is Suppressing Volatility to Bleed HFs -- Max Pain Explained
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| Author       | Source       | 
| :-------------: |:-------------:|
|  [u/JuxtaposeLife](https://www.reddit.com/user/JuxtaposeLife/) | [Reddit](https://www.reddit.com/r/GME/comments/mi1a5r/our_whale_is_suppressing_volatility_to_bleed_hfs/) | 

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[DD 📊](https://www.reddit.com/r/GME/search?q=flair_name%3A%22DD%20%F0%9F%93%8A%22&restrict_sr=1)

I'll keep this brief, I used up the last of my Adderall on that DD yesterday.

TLDR; This price stability, volume low, is not natural -- a metaphorical spring is suppressing at great force right now. Gamma potential is building for the coming weeks. Catalyst for launch growing. No dates, but the longer this goes, the more power I see growing.

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Warning... only one picture ahead and a wall of text, arguably some fractional size of the library of congress (truth) in .txt size. You will wrinkle the brains if you continue... I'm not financial guy. I just like explaining things in simple ways. Enjoy...

This, is not normal... that's volume minute by minute

[![r/GME - Our Whale is Suppressing Volatility to Bleed HFs -- Max Pain Explained](https://preview.redd.it/2hrqqsv4rlq61.png?width=1495&format=png&auto=webp&s=afd396ca8d4e45cef312bb385d83bf8eb4ee8a8e)](https://preview.redd.it/2hrqqsv4rlq61.png?width=1495&format=png&auto=webp&s=afd396ca8d4e45cef312bb385d83bf8eb4ee8a8e)

12:20ish 4/1 trading GME

that large movement of $2 in price in low volume, then sudden brakes applied to the movement with high volume to bring it back.... it's not isolated either. This has been happening since last Thursday, after we corrected from those Media shenanigans after the Q4 Earnings Report (down to $115, and right back up to $180).

What I've seen, and many others have been noticing and mentioned too, is this odd consolidation at Max Pain levels. This is a term to signal how to apply the maximum damage to Options players (Puts and Calls) - HFs in particular, since they are all up in those options. See when IV (Implied Volatility) is way up there, everyone gets excited about swings and maximizing gains on those swings.

MAX PAIN

So back to the point about Max Pain. IV makes Calls more expensive. The simple explanation for this is... when volatility (movement) in the stock is high, people are more willing to bet on up and down movement and they'll pay more to play a gamble on it, because with wild swings (up to $250 and down to $125 in a week... odds are they'll gain). When we float by slowly, at $180, then $183, then $191, then $193 all week... well that is a damp towel over the raging fire that is high IV excitement like we saw last week.

For the last few months HFs have been making money playing these swings in price (Tuesday $180, Wednesday $115, Thursday $215 <--- remember that last week? I think I got the dates right), sucking money out of the options market. They likely have survived longer than the otherwise would have because of this cash. It also allows them to float their FTDs forward. They need this churning, they hate when we just HODL and avoid the options market.

The Whale

Enter the Whale (we are riding next to, under, beside, anyone on top?). Imagine someone with FU money... $50,000,000 sitting in an account, and a huge pile of shares (just under the reportable limit)... they want to inflict the max punishment on the HFs before watching them burn. So they stop the wild swings in GME price by doing this:

High: when we are $2 above current price, hit every single buy order with a sale, hammer that price back down, but not so hard it goes down, just enough to keep us in this channel. (the chart above is literally this)

Low: when we are $2 below current price, hit every single seller with a buy order, hammer that price back up, but not so hard it takes off, just enough to keep it in this channel. (it's almost happening just like the chart above... over and over)

This dries up volume. It also keeps the stock stable. Money piles in and out of stocks based on movement, and if that movement is always suppressed, it never builds. It waits... we're all waiting. Patiently. Eating crayons.

What this also accomplishes, is lowering that IV figure - the cost to play Calls. Remember that IV is like the cost to play the gamble. Well, if we sit all week between $185-195 ... next week the call writers aren't going to get as much premium because everyone thinks... this is stable, not moving much, why would I pay high fees to gamble on price going above $200? This is setting the stage for a Gamma squeeze. When IV gets low, the prices of those 200, 220, 250 Calls do as well. Large players start to buy them in mass and when the Whale removes that ceiling "oh, you thought that was permanent? lullz" (stops selling every time we start to go up) well we set off a Gamma squeeze, that rockets us back towards $300, and beyond. This, aligned with other factors, can initiate the real squeeze as well. No dates. Stop asking. This could go on another week, two, three... more...

Ok I wrote too much. I'm not going to go back and proof read. As you could see in my post yesterday where I wrote too much. I no spell good, and I think Commas as Comas. But I did manage to get hot pink in my chart again. Is that a thing yet? :)

Reminder:

I'm an idiot.

I don't know Calls.

I can't even spell Poots

I don't know how the stock market works.

Or how to use the word it's properly. Its too difficult.

I'm just analytical as fuck and love patterns, statistics, and probabilities.

This is not financial advice.

My daughter says "Hi" to you all beautiful apes, and she got a kick out of all the colors in the banner... you beautiful souls.

Ape Strong!

*** Edit 1 ***

removed the world People and replaced it with "Large players" (I do not want to imply Apes are buying Calls in mass)

*** Edit 2 ***

First off... major Props to the moderators of this forum. I have to report (or memorialize) what I just experienced on r/ WSB (I posted this there hoping to get the information to more people) and it blows my mind. I can only draw one conclusion from this, but I'll let you all draw your own... within 3 minutes of posting (likely less time than someone could even read the whole thing) I had 10 positive comments such as "oh another one, awesome let me read" and 10 negative ones, mostly in all CAPS as if they were watching my name (likely from my post yesterday that got me noticed) that were immediately calling this BS and fake information. Anyone who commented under those comments asking what they meant, was then attacked. In the next couple minutes I noticed every positive comment get downvoted to -8 (including my own) and the post itself go from 250 upvotes down to 102. By 10 minutes after posting a moderator on WSB took the post down. When I asked why. (keep in mind it's the same text you're reading here - with the only difference being Edit 1 above (one word changed to two words)) The reasoning provided for removing this post from WSB was:

*"telling people to buy options so they can all hold and make money is bordering on pump and dump, you can do a technical analysis and look at the technicals to explain why you think people should buy it. But telling people to buy it so you can all hold borders onto territory where SEC would not like it."*

Hmmm... fwiw, if you read this, and think I'm implying you should buy call options, I'm not. I'm not telling anyone to do anything. Just shining a light onto something I see, and trying to explain the significance of it, in my own words. None of my words are meant to push anyone to do anything. Anyway, I wanted to capture this experience in this edit. This, in my mind is clear confirmation that this is hitting a nerve. It's information that people don't want out there. Stay healthy Apes. Care for one another. We are all trying to make the best sense of this data, in our own ways. Much love to you all!

*** Edit 3 ***

The best way to combat shills, is with humor. Had to share, because I went back and I couldn't stop laughing at this one that someone caught (was deleted a few minutes after). I hope [u/Pyzlos](https://www.reddit.com/u/Pyzlos/) got to keep that Gold -- if not, and you read this, post something here and I got you. 💎🙌🦍🚀🌕
