AMC Options Holders Exit $4 Calls as Stock Heads for Record Low Close

Luzi Ann Santos wrote a column · Apr 1 14:06

Not even the encouraging words from $AMC Entertainment (AMC.US)$'s CEO is enough to halt the stock sell-off and that negative sentiment is also bleeding into the options market.

More than 16,500 call options that give holders right to buy AMC shares at $4 by the end of the week changed hands as of 3:01 p.m. Monday, the biggest volume of all options tied to the stock of the operator of movie theaters. The price of those options shrank 64% to just 3.5 cents per share.

AMC Options Holders Exit $4 Calls as Stock Heads for Record Low Close

The sell-off in the options market mirrors the action in the underlying stock that saw its price sank almost 13% Monday, poised for a record closing low. The downward momentum came after the company last Thursday filed for a secondary offering of as much as $250 million in shares.

The sell-off continued even after AMC Chief Executive Officer Adam Aron posted on X that the box office industry has turned a corner and things are looking up.

Share your thoughts on AMC and its options.

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