$AMC Entertainment(AMC.US)$ I am no expert trading wiz and I...
$AMC Entertainment(AMC.US)$ I am no expert trading wiz and I am speaking only from what I have learned holding AMC. I understand consolidation and retracement. We were over due for a solid red day. But IMO, it didn't need to be this bad, and the truth as I see it is that some of us are selling. Even OG diamond handed Apes......we are selling options to protect gains or keep from having losses. And more than that we are buying, buying options so far OTM that we might as well just hand them our money. When you sell your ITM options, you are giving them 100 shares to sell. When your option is ITM, they go out and buy 100 shares to cover when you exercise that option. When you sell it instead of holding it, they are free to sell back those shares. Yesterday was all about burning the value of ITM calls. As those gains decreased, Apes started to sell. Each contract sold gave them back 100 shares to sell back.
Please, if you don't understand options and how they affect stock value, don't buy them. IMO.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
rennymc : Couldn’t agree more. I’ve been saying for months that options are killing this.
Betterthangold rennymc : Hedging your money playing options both ways is the wisest approach, but without a crazy options chain there won’t be catalyst for a major squeeze. It will take a little longer, but the stars will align. I think once it retraces to $22, it will explode from there.
STD0313 OP rennymc : I am not saying that options don't help.....I love a good gamma squeeze....but people that don't understand options should not play with them.....I know that after 3 years of trading I don't feel comfortable saying I know enough.....the good old approach is good for me....buy the stock, hold the stock
White Squire : Personally I sell half of my shares when I feel like it's near "top" and hold half for moon. I then rebuy the same number and take my profit off the table. Once my shares our all "house shares" I double my position. Never options, and with this I have doubled up twice, not financial advice just what I have been doing...shhh
Daniel Powell : ftd's from Friday and Monday have not been delivered that's why 4.5 million shares borrow today shorted on a day where the market is down have the volume of yesterday
Daniel Powell : remember AMC went from 1290 to almost 35 that's almost 300% in two weeks go back and look at January and June research