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sul***com

02/20/2021 01:05

$AMC Ent Holdg I find it interesting here, under news, that CNBC is commenting specifically on AMC options. The main speaker keeps talking negatively regarding options which expire next Friday (Feb 26th) or the following Friday (March 5th). With a +/- 7% - 14% move historically upon earnings, and with EARNINGS REPORT due on Feb 25th??? Look at all pandemic effected industries; the anticipation is for a return to normality; well, AMC is re-opening theaters world-wide every day.

My point is that buying and holding options within the next two weeks allows the buyer CONTROL of 100 shares (per contract) throughout earnings, so short holders have to cover shares against the options which end up in the money by expiration, and AMC is so oversold that this earnings report could easily launch this stock.
Disclaimer: The comments, opinions and analysis expressed herein are for informational and educational purposes only and shoulk not be considered as individual investment advice or recommendations. Webull is not responsible or liable in any way for comments posted by pur users.

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All Comments(6)

fxdglider02/20/2021 01:29
????.....How about a covered call?what effect would that have on the holder and the market?

sul***com02/20/2021 01:37

This is ONLY my opinion, but selling a covered call with the AMC scenario has two negative effects; first, it allows a potential short holder an "out" of 100 shares at a significantly lower pps than what many anticipate values to increase toward; second, it limits the seller's potential for increased value (above the strike price). So if you sold $10 calls, you would collect the premium, and value between current and $10, if AMC were to spike heavily, but you would forfeit all gains above $10.

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ICANTAKEITORNOT02/20/2021 01:23
I'm counting on it. You know they made bank. Hopefully dividends to the shareholders thAt stuck together to save it. Either way. Nice to finish the week on a high note and we got complimented on Market Watch. WTF

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Ang***com02/20/2021 01:23
Anyone that doesn't follow their advice is an inferior trader and it's getting old.

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Stonkdoofus02/20/2021 01:08
Better to just buy the shares.

sul***com02/20/2021 01:15

I agree, and I do have shares, but having calls allows further leverage against short holders because those shares have to be produced if the pps is in the money upon expiration, and the cost of an option, and thereby controlling 100 shares, is far lower than the cost of buying 100 shares on the market. Just my opinion, and only stated because when I see CNBC trying to "protect" retail investors, I usually do the opposite because they work and are paid for by the Wall Street Machine

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PlayBoi02/20/2021 01:08
I got 1 6.5 call on the 26th for a break even of 7.19, I'm not worried

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