Anchorage Capital Closes After Betting Against AMC Stock

Anchorage Capital closes after betting against AMC Stock
Anchorage Capital AMC | Anchorage Capital Closes

Anchorage Capital Group, LLC has announced it is shutting down due to significant losses.

The hedge fund is closing after 18 years and returning the $7.4 billion dollars it manages back to clients.

Their credit fund, Anchorage Capital Partners is suspending clients’ ability to get their money back, via WSJ.

Hedge fund Citadel Securities is facing a similar issue with their clients, preventing them from withdrawing unless they pay a heavy fee.

Anchorage Capital was one of the top 10 financial institutions shorting AMC stock and now they’re throwing in the towel.

franknez.com

Welcome to Franknez.com – Hedge funds have been warned not to bet against AMC Entertainment or the community. Retail investors are about to shut hedge funds down.

Let’s get started!

Anchorage Capital Had 4 Million Puts of AMC Stock

Anchorage Capital AMC Puts
Anchorage Capital AMC Puts, Source | Hedge fund closes

This hedge fund was betting against AMC in put options.

A put option allows traders to profit from the decline of a stock.

These contracts have an expiration date by which a trade settles if it meets at or below the strike of the bet.

The put buyer’s entire investment can be lost if the stock doesn’t decline below the strike.

This is how hedge funds such as Citadel Securities have lost billions all year.

Retail investors continue to buy and hold AMC stock, meaning short sellers don’t stand a chance against the community supporting the century old theatre chain.

And with AMC Entertainment continuously innovating with crypto, NFTs, and licensing agreements, the company is impenetrable.

Read: The most innovative things happening with AMC today

The news came shortly after Hong Kong’s $2.8 billion hedge fund Tybourne shut down.

Is this a trend we’re going to continue seeing from hedge funds shorting companies, but more specifically AMC stock?

Without a doubt.

Squeezing Shorts from Their Positions

AMC Short Squeeze Rocket
AMC Rocket

As retail investors continue to buy and hold AMC stock, they will eventually squeeze shorts from their positions.

The stock has recently come down from the consolidating level ranges of $40 and $30.

Its current share price of $24 seems rather appropriate for hedge funds with overleveraged positions to cover.

That is unless they are willing to lead their customers into the brand-new year with mounting losses again.

AMC is currently oversold and will be making its way back up resulting in further losses for shorts who’ve recently opened new positions.

The company has progressively been paying down its debt every quarter and increasing its revenue throughout the year [read Q3 highlights].

And with an incredibly strong retail community rooting for the company, more hedge funds like Anchorage Capital will begin to realize betting against AMC will result in a massive loss.

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Read: SR 21-19: The fed is about to impose massive margin calls

Topic Discussion with FrankNez

14 Comments

  1. Cris agui

    U just gave me a boingggg!!!!! πŸš€πŸ¦πŸš€πŸ¦πŸš€πŸ¦πŸ™πŸ™πŸ™

    • Frank Nez

      πŸ˜‚πŸ˜‚πŸ˜‚

  2. Alfredo Iznaga

    Thanks Frank for articles, keep us well informed, here I will continue to keep !!!!!

    • Frank Nez

      Much appreciated Alfredo, thanks for being an avid reader brother 🀝

  3. Jerome Lapus

    Thank you Frank for always updating us. May God Bless you more😊

    • Frank Nez

      God bless you brother 🀝

  4. alvin rodriguez

    we holding we not leaving!!!!

    • Frank Nez

      πŸ’ŽπŸ™Œ

  5. Eddie Turner

    Frank u r da man! Keep kicking the knowledge brotha. You are appreciated by many. Stay gold!

    • Frank Nez

      Much appreciated brother, thanks for reading and sharing 🀝

    • Aaron D

      Doing a great job Frank with these articles. Appreciate the awareness being created around these critical issues

      • Frank Nez

        Thanks for being here Aaron 🀝

  6. Charles

    Encouraging development. More reason to hold. The Ape 🦍 community gets stronger and stronger. Thank you Mr. Nez for keeping us in the loop.
    Cheers

    • Frank Nez

      Thank you Charles 🀝

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