Amc stock short squeeze series#
Amc stock short squeeze tv#

However, back in February, USPS awarded the entirety of the 10-year, $6 billion contract to Oshkosh ( NYSE:OSK), thereby precipitating a brutal plunge in Workhorse shares. To wit, expectations around Workhorse becoming a key node in US Postal Service’s (USPS) Next-Generation Delivery Vehicles (NGDV) contract had spurred a dramatic 900-percent-plus rally in the stock last year. Tim has also been invited for reoccurring appearances on CNBC’s Volatility Playbook.Despite the ongoing stock surge, which allowed the stock to surge over 35 percent in the past week, the fundamental narrative around Workhorse has not changed.

Amc stock short squeeze tv#

Tim has appeared on PBS and the Nightly Business report, while maintaining weekly appearance on Bloomberg TV and CBOE-TV to discuss everything from volatility to LEAPs. Tim spent 13 years as Chief Options Strategist at Man Securities in Chicago, 4 years as Lead Options Strategist at ThinkorSwim and 3 years as a Market Maker for First Options in Chicago. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines. On the date of publication, Tim Biggam did not have (either directly or indirectly) any positions in the securities mentioned in this article. The short strike price provides a 31% upside cushion to the $38.14 closing price of AMC stock. Return on risk is 12.35% in 43 days, or just over 160% annualized. Maximum gain on the trade is the premium received of $110 per spread. Sell AMC Nov $50/$60 calls spread for $1.10 net credit That trade is working out with the spread now trading at just 20 cents as expiration approaches in a little over a week.Īs the saying goes, “If it ain’t broke don’t fix it.” So, to position to be a willing seller of any rally in AMC stock, another out-of-the money bearish call spread continues to makes sense. I recommended selling an October $50/$60 call spread for a $1 net credit. In essence, very little has changed since that time. I touched on a similar scenario in my previous article on AMC from Aug. This likely signals the buyers have become exhausted and the upside momentum has certainly softened.

Amc stock short squeeze series#

More importantly, AMC is seeing a series of lower highs since falling from short squeeze parabolic highs in late May near the $70 level. AMC stock is still below the 20-day moving average at $41.13. Shares are back in the trading range bounded by $40 to the upside and $30 to the downside.

Momentum has turned higher but remains slightly negative. The moving average convergence divergence improved but has yet to generate a fresh new buy signal. The nine-day relative strength index bounced of oversold levels but with little conviction. Source: The thinkorswim platform from TD AmeritradeĪMC is back to a neutral reading from a technical perspective. That definitely doesn’t bode well for the return of the in-person cinema experience, especially given that Bond films normally bring in big-time box office revenues. This was at the AMC South Barrington theater near me and it was about an hour before showtime. When I looked on Fandango for last night for the 7:30 show, only six of the 75 seats had been sold.

So I thought I had better check on the availability of tickets. The 7 Best Consumer Discretionary Stocks to Buy for Q4 2021Īs a big James Bond film fan, I definitely am looking forward to going to the theater to see the latest Bond release No Time To Die.That’s certainly not a great backdrop for a company that is facing increased competition from the likes of Netflix (NASDAQ: NFLX) and now Apple (NASDAQ: AAPL). AMC has lost over $10 per share in the past year and is expected to lose money again next quarter. Add in some serious dilution from the recent capital raises and it is difficult to make a case for owning AMC stock anywhere near current levels.Ī look at the last four earnings reports shows just how much cash is being burned. He noted the combination of onerous debt loads, continued cash burn and lagging attendance are serious headwinds for company moving forward. InvestorPlace contributor Muslim Farooque took a deep dive into the fundamentals in his recent article. Time to fade every rally attempt on an extremely overvalued AMC stock. The meme momentum mania has passed, or at least paused. It’s important to remember that these red-hot rips higher were fueled by short squeezes and not actual fundamentals.