An Excellent AMC Exit Strategy Guide: Short Squeeze

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An excellent AMC exit strategy guide: Short squeeze

A lot of you might be wondering what’s a good exit strategy guide for an AMC short squeeze. I have an excellent exit strategy guide for you. I will help you determine what type of retail investors surround the AMC community and help you take an approach you might have not thought of.

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an excellent AMC exit strategy guide: short squeeze

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Lets get started.

I’ve received emails and enthusiastic responses on the discord to write on this subject matter. After all, it’s a very important topic to discuss, right? We all want to be ready for when an AMC short squeeze occurs.

I want you all to make money. Not just money though, stupid money. But it will be up to you to decide just how much you’re willing to gain during the process of a squeeze.

How long can a short squeeze last?

A short squeeze can last several days to several weeks. When Volkswagen squeezed it lasted about 3 days before it started descending. GameStop on the other hand lasted several weeks and has gone down very slowly.

In a recent video with Trey’s Trades, he gives his personal opinion that an AMC short squeeze may potentially last weeks, just like GameStop’s. And I agree.

With that being said, lets start by discussing the 3 types of sellers.

3 types of retail investors in AMC

There are 3 main types of retail investors holding AMC stock. Identifying which type of retail investor you are will help you determine your own personal exit strategy for when this stock squeezes. In short, they are the:

  1. Get in and get out sellers
  2. Anxious profit taker
  3. Diamond hand seller

I’m going to break down these 3 types of sellers for you so you can determine and identify where your conviction is in the stock.

Get in and get out seller

This type of retail investor is in it for a quick buck. These retail investors will cash in at the first sight of profits. This group will be a very small group of people, mainly due to the lack of DD (due diligence) in the stock itself.

If you’re a new retail investor and don’t have the slightest clue as to what’s been going on with AMC Entertainment, I recommend you do a little bit of digging. I’ve published several posts for the community which you can find under the ‘top posts & pages’ column on the right side of my blog.

Negligence of researching information could just cost you a once in a lifetime opportunity. This AMC exit strategy will not yield impressive profits.

Anxious profit taker

The anxious profit taker is most likely going to be the retail investor who holds longer but takes profits at the first sight of dipping in the market.

Retail investors who cashed in on GameStop when it dropped back down to $193 after reaching $347 missed out on the bounce back up to $325. Some retail investors will fall under this category simply because of the anxious emotions that are simply human nature.

Remember this example when AMC squeezes and it starts to come down. Holding a little longer could potentially prove to be a better financial decision. Refrain from allowing anxiety to make a financial decision for you.

Your AMC exit strategy should serve you to make the most out of this trade.

Diamond hand seller

This is going to be majority of the AMC community who have been deeply involved in the research and fighting for the cause. This type of retail investor is not looking for a quick buck, they’re not looking to double nor triple their money. These retail investors are going to be the ones who get to experience a life changing event.

Diamond hand sellers are the retail investors who are going to call the supply and demand. They’re going to hold the stock past $100, $500, and possibly even $1,000. Again, we will find more out as this short squeeze begins to unfold.

These retail investors are the seasoned apes in the community who are not leaving until they’ve made enough money to change their lives and the lives of many others.

Millionaires in the making

Diamond hand sellers’ exit strategy is to take profits extremely high and then put some money back into AMC when it dips. This AMC exit strategy has immense potential to yield massive profits.

How many AMC shares do I need to become a millionaire?

AMC exit strategy

This is going to highly depend on two factors.

  1. The number of shares you have.
  2. The share price of the stock.

If you own 1,000 share of AMC stock then that means the stock price will need to be worth $1,000 for you to make $1,000,000. Keep in mind that you will need to pay taxes on this. I published an article where you can determine your tax rate here so be sure to bookmark it for later.

And if you own 5,000 shares of AMC stock then the price will only need to go up to $200 for you to make $1,000,000.

But maybe you’re not looking to make 1MM, and that’s okay.

Your number of shares = your multiplier.

Everyone’s AMC exit strategy will be different

See there is no actual number that I can tell you when to pull out. This article is to help you identify your conviction towards the stock and the overall sentiment of the community surrounding AMC and its data.

More data will be released to the community as the squeeze unfolds which could help you navigate your way to maximum profitability.

AMC’s charts will reveal a lot of information when this squeeze happens. This is when the community will begin to take a more serious approach to identify when to sell.

How to identify when to sell

AMC exit strategy

An excellent way to determine when you should sell your shares is to look at the number of shares you currently hold and make an honest assessment of how high you think AMC’s stock price can potentially go up to. Then, set a number you will be happy with profiting from.

Remember, an AMC short squeeze could last several weeks. This means you have time to identify when to sell as the stock goes up or down. You might even see yourself shooting higher depending on the stocks price trend.

This information will come to light when we have the analytical resources.

Example of an AMC exit strategy

If you’re holding 100 shares of AMC and your goal is to make $50,000 then you’d have to sell at $500 per share. The same applies if you’re holding 5,000 shares and your goal is to make $4,000,000. Your sell target would be $800 per share.

In this scenario the stock could hypothetically speaking have squeezed high instantaneously. And again, there could be many scenarios but I’ll go with this to use as an example.

Set a profit target for yourself and stick to it.

Don’t be afraid to take your profits once you’ve set your goals down. In the end, they are your goals and your goals alone. The leaders in the community will do our best to help you maximize your gains; however, if you feel you’ve made a life-changing profit then take it.

Here’s a breakdown of how you can calculate your exit strategy.

Create a bracket

Create a bracket and note down on paper how much money you’ll make with AMC’s stock price at $100, $200, $400, $600, $800, $1,000 and so on. This will allow you to see your possibilities in writing.

Here you can determine your risk tolerance. Everyone’s will be different to some degree. You might select $600 as being your absolute bottom with your price target being $1,000.

This example is just one way you can prepare and plan for an AMC exit strategy. Your numbers might be higher than these and that’s great too. Just make sure it’s in line with the data, otherwise you might be left bag holding.

By creating a bracket for yourself you can plan and execute almost immediately when the stock hits your price target.

Increase your multiplier for bigger profits

Contribute to your position if you’re not happy with where your price targets are at.

Something I’ve personally done is I’ve added to my position after doing some math and locking down my goals. This will help me pivot in the event that the share price doesn’t reach my expectations.

My goals will require me to diamond hand this and I’m 100% okay with this.

Signs a short squeeze is over

AMC exit strategy

Like any other short squeeze in history, the stock eventually has to come down. Signs that indicate a short squeeze is over include:

  • Price action gradually declines after several weeks to months (as seen with GameStop)
  • Short borrow fee rate declines
  • The stock will begin to consolidate oppose to running up
  • The overall bullish sentiment is over

Most of this data will be presented to the community by analysts and DD reporters like myself. When there are strong indications that the short squeeze is over, you will know. The community will not allow other members to get left behind.

How to prepare yourself for a short squeeze

I’m confident most retail investors who have done their homework are going to make a lot of money. One thing you can do to identify your opportunities is to continuously educate yourself as this short squeeze unfolds.

You can watch analysts on YouTube as they update the community with AMC chart trends. I will be providing you with value here as well as on my Discord group.

When should I exit my position in AMC?

As you can tell, there’s no specific number that can be generalized for every retail investor.

Retail investors should be setting their goals and abide by them. If your goal is to make $100k then shoot for $100k. If it’s to make $1,000,000 then you can certainly do so. But shoot for the moon because that’s where retail investors intend on holding onto.

So, although everyone’s AMC exit strategy will be a little different, most retail investors are diamond handing the stock. You can rest assure the community will have your back when it comes to strategies that occur in the playfield.

Scenario

For instance, if AMC squeezes up to $800 and it consolidates then we can anticipate there’s room for supply and demand. Not all shorts would have covered which means retail investors can continue to drive the price action up by holding their positions.

In this scenario you could continue to ride it out and shoot bigger. But if we see a pattern laddering down after about a week or so, then that’s a good indication you can begin taking profits (on the way down).

Can AMC really reach $1000+?

AMC Rocket

AMC, like any other stock has no ceiling. The difference here is that AMC can have one of the biggest short squeezes in history mainly due to how heavily shorted the stock is. Short squeezes are violent and suppressed movement can also play a role in its gains.

There hasn’t been a short squeeze in history that has had a community like AMC does, with the exception of GameStop of course. We also haven’t seen a battle between hedge funds and retail investors like that of with AMC shareholders.

Hedge funds suffered significant loses amounting to billions with GameStop. The last thing they want is to lose more money to a second company so they doubled down their short borrowing power with AMC. This means more short shares to borrow equivalate to more short sell loses, and potentially a MOASS (mother of all short squeezes).

Read: How soon will we see an AMC short squeeze?

Do not panic sell

One thing I do want to express to the community is to not panic sell as you begin to see perpetual gains with AMC. These series of gains are known as gamma squeezes.

They can be a result of an increase in retail investors buying the stock as well as small short sellers beginning to cover their positions.

An AMC exit strategy should be level headed. Get involved in the community to see how everyone is holding up through the gains. Chances are many retail investors within the AMC community are going to be holding the stock relatively high.

If something needs to be addressed surrounding the squeeze and its movement, the AMC community will communicate it.

Keep up with the latest news in the stock

As I mentioned earlier, a lot of people will be covering the stock as it begins to move upwards and ultimately squeeze. This means you will always have the help and support from analysts and others in the community that will help contribute to your AMC exit strategy.

Analysts I trust in the community include Trey’s Trades and Roensch Capital. You can watch their analytical videos on YouTube.

I would stay clear of headlines from the likes of Yahoo Finance, The Fool, InvestorPlace, and MarketWatch as they have been known to spread fear, uncertainty, and doubt (known as FUD).

For compact information join my Discord group

AMC with Franknez.com Discord

I post the latest short borrow fee rates and updates on both my Twitter and Discord Group. I will personally be updating the community with news and chart trends from analysts as this squeeze unfolds.

My mission is to help you make as much money as possible so be sure to join the community and stay informed as this event unravels.

I’m confident the community will continue to keep everyone informed on chart trends and AMC exit strategies as this historic event unfolds.

What would an AMC short squeeze mean for you?

Let me know in the comments section below what an AMC short squeeze would mean for you or your family. And lastly, if you found value in this post please be sure to give it a social share.

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23 Comments

  1. Timothy Griffin

    So we continue to hold our stocks, set a selling price in our mind, then once AMC hits that price per share we sell through our investment firm (Vanguard) online. Just like we buy/sell any other stock?
    Thanks for all you do!!

  2. James

    Hi Frank,
    I have had my AMC stocks since January. Along with Blackberry, and small shares in other Canadian and American stocks. About a month ago, I sold all of my other stocks and went all in with AMC.
    I haven’t worked for the last 3 years due to exposure to Asbestos / Silica when I was a young man out of school. I am now been going through testing for a Lung Transplant, as the doctors tell me medications and ther treatments are of no value to me.
    I have went from making a salary of $90,000 a year to government disability of $24,000 a year. I have a wife and 5 children with 3 of them under the age of 17 living with me. While I have had to hire a law firm to fight the insurance company for Long Term Disability, my employer (a Municipality) has terminated me, severed my benefits and life insurance. My wife works in a local factory with some benefits, which cover some of my medications, but the remainder is up to me to pay along with other medical appointments that are not covered.
    These AMC Stocks will be my gift to my children and grandchildren for their futures.
    I have been following “Discord” and you and Trey, to try and keep informed on our progress.
    I guess you can say, “I am all in with AMC”!!

    Thank you and all of the other Apes for the information, their dreams and their knowledge.
    I hope to see you Apes on the moon

    Thanks again Frank for all you have done for this group.

    • Frank Nez

      James thank you for sharing your story with the community brother. The good guys always win, see you on the moon πŸš€

  3. Sean Palmer

    Stumbled across another article you wrote about AMC and have been drawn in. I own a couple of hundred shares and have been hodling and feel this has been the right move. When it’s dipped I’ve bought more several times. Sometimes I think I’m insane for doing so but have hope that this will balloon into something bigger then I could have imagined. Love Trey’s Trades and now this page. Reddit is my go to night reading and love the posts. Hopefully I’ll look back a few weeks from now and be grateful that I bought a one way ticket to the moon! πŸš€ 🌝

    • Frank Nez

      Thanks for being here brother πŸ€πŸš€

  4. John O

    Hey Frank,
    I am new to trading, but currently hold 310 shares, so I have invested about $3400. One thing I have been thinking about is once the squeeze happens, to take out some shares to get my money back. For example if it were to get to $340, I could sell 10 shares for $3400 and have my money back. Mentally I think from there it would be easier to let the other 300 shares ride hoping for a real moon. However, if me and a million other apes did that, we might be putting too many shares back and hurting the price. Thoughts on that?

    • Frank Nez

      Hi John,

      Everyone is going to have their own strategy brother. Some apes might do this, majority won’t. Everyone’s finances are uniquely theirs. If you need to take out your initial investment than no one can tell you what to do. The data from technical analysists predicts that with shorts covering their positions right now the stock could go up to $1-$2k easy, not taking into account synthetic shares, etc. Millions of apes will be holding in the hundred dollar range due to how much further the price action may go.

  5. Hazpak

    Your a Legend Frank! Respect Bro

    • Frank Nez

      🀝✨

  6. Ronald S Babson

    319 shares and holding. Will buy more next week and start on an exit strategy. Thanks fornall the information!

    • Frank Nez

      Happy to help Ronald.

  7. Alex

    Amazing and intereseting blog ! I appriciate your work. It helped me a lot to understand the whole situation about AMC, squeeze, and so on…

    May I ask you, is it better to put limit orders where I split my whole shares, or is it better to put some limit orders and leave some shares for backup or is it better to sell the shares manually?
    An if selling manually, should I sell with a Limit or for Marketprice ?

    Once again thanks for the amazing blog, and I hope we all will earn good experiences when it is over πŸ˜€

    Greets πŸ˜€

    • Frank Nez

      Alex – I appreciate your comment brother. The community doesn’t recommend setting sell limits as it might limit the squeezes potential. Majority of us think the best bet is to sell manually. Because the squeeze could be volatile, it’s probable you won’t be able to sell at market price. We will most likely end up cashing in with a limit order but it’s hard to tell at the moment. This is only and educated guess based on only being able to purchase limits right now. Thanks for being here!

      • Alex

        Hey Frank,

        thank you for answering. OK I understand.
        So I will try my best. But I think one limit I will set just to get back my money stack, and than I will see to sell the rest manually.

        So letβ€˜s do the best possible.
        Thank you again, and I further will read your blog and recommend it πŸ‘πŸΌ

      • Lowen Gore

        Hi! New here and sooooo thankful for your help. I remember learning for the first time in January about how hedge funds can borrow against your money if you don’t have an order on it. In other words, your broker (say Merrill) can lend it back out again, but not if you’ve locked it in with some stop order (which could be ridiculously high). Is there anything to that?

        • Frank Nez

          Hi Lowen, thanks for your comment. This is correct. You would have to contact your broker and request that your shares aren’t being lent. Brokers such as Vanguard do not lend your securities. I would check with your current broker just to be sure!

  8. Dan Myron

    Very well done. Kudos…..

    • Frank Nez

      Thank you Dan 🀝

  9. Erik Uh

    I appreciate all the time and effort you put into your articles that are informative and easy to understand. This event will be a life changing event for me and my wife. Thank you!!

  10. Nubbin Alburo

    Big thanks to your Blog Frank! I have learned a lot and many others too!

    • Frank Nez

      I appreciate your comment Nubbin. Happy to hear you’re gaining tons of value from the blog!

  11. Jerimic Clayborn III

    Peace, prosperity, blessings, and the covering of the Holy Spirit be with you now and forever!

    *Generational Wealth it is! To the πŸŒ™ we go!

    • Frank Nez

      Amen! πŸš€

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