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.

Disclaimer: Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy.

Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more