$AMC Ent Holdg
When it comes time for firms to cover margin and buy back borrowed shares, broker's, HF staff and Market Makers trading systems start crawling all the exchanges and platform brokers for shares being sold.
For the sake of HFs argument, lets say they own the remaining 650K shares. Well, there are still millions upon millions (54 million) more NEEDED to be bought back from their short positions.
As it stands, without anymore dilution, they can only cover what they currently own (less than 1 million), then the algorythm continues up the margin chain buying the few million shares for sale, starting lowest-to-high between 10 going to 500 to 700 so on and so forth upwards to 1K+
That gap up to 1K can happen insanely quick, that is why you had the rush of "remove sell limit" comments today.
With few to no high sell limits, its easy to maintain the inevitable squeeze and cap it off at a certain price..
Yes there will be retailers selling before 1K but by that time it will be too late and this thing will be all over market radars and investors stock alerts.
To add insult to hedgefund injury. Eddy Griffin is even saying AMC gonna squeeze hard.
Just ask yourself this?
Why would you settle with 55-150 when you are guaranteed 700-2000 just because of this VERY UNIQUE SITUATION?
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