"There's a retail fanaticism with this stock right now," said MKM Partners analyst Eric Handler, who has a sell rating and a $1 price target on AMC stock. Investors appeared unfazed by the sale, which some analysts said was an attempt to cash in on the retail-driven rally. With AMC shares trading around $58, short-sellers stand to lose $1.8 billion today, financial analytics firm Ortex said in a tweet.ĪMC shares surged a day after hedge fund Mudrick Capital Management sold a $230 million stake in the company for a profit shortly after acquiring it, saying the stock was overvalued, according to a source. "Market makers are just chasing the stock," said Matt Amberson, principal at options analytics firm ORATS. Market makers who sold these and other bullish contracts were left with no choice but to buy AMC stock to hedge their own risk, thereby exaggerating the rally, analysts said.
They are using a very similar playbook," Sosnick said.Ĭall options that would pay off if the shares topped $40 by June 18 accounted for the largest block of open contracts on AMC, with about 215,000 contracts open. "People have learned what tactics work under these insane circumstances. The AMC rally is likely partly driven by market markers buying stock to hedge their exposure from selling options, an event known as a "gamma squeeze," analysts said.
AMC GAMMA SQUEEZE FREE
Sign up is completely free at /h42VGCCD1I- Adam Aron June 2, 2021 #AMCInvestorConnect gets you AMC Stubs benefits and ***SPECIAL SHAREHOLDER REWARDS*** for those who patronize AMC Theatres in the U.S. Today, AMC and I launch an innovative effort to communicate often with AMC shareholders. On Wednesday, AMC Chief Executive Adam Aron, who has embraced the retail frenzy for his company's stock, offered free large popcorn to even the smallest investor who signs up for a regular newsletter. "It's meme stock 2.0.," said Steve Sosnick, chief strategist at Interactive Brokers.
AMC GAMMA SQUEEZE SOFTWARE
Other so-called meme stocks touted on Reddit's WallStreetBets and other online forums, including security software provider BlackBerry and headphone-maker Koss, also scored big gains. Shares of the video game retailer rose more than 1,600% in January, partly because bearish investors unwound their bets against the heavily shorted stock as buying surged.
The massive rise in AMC's shares, by about 3,000% this year, is beginning to resemble the wild ride in GameStop stock earlier this year. The shares surged 97.3% to $63.23, after hitting a high of $72.62 even as it was halted for volatility earlier in the session. NEW YORK CITY (Reuters) - AMC Entertainment Holdings shares more than doubled to record highs on Wednesday, extending a breathtaking rally partly fueled by heavy options trading, while the theater chain operator promoted free popcorn to investors.
Reading or replaying the story in its archived form does not constitute a republication of the story. Information in the story may be outdated or superseded by additional information. This archived news story is available only for your personal, non-commercial use.
0 kommentar(er)
