Bank of America and JP Morgan continue to bet against AMC despite the repercussions.
Like hedge funds, banks have also been under much public scrutiny for betting short in the market.
Regulators subpoenaed some of the largest banks and hedge funds after investigating communications between the two parties earlier this year.
Goldman Sach’s dark pools were investigated in May – a popular issue amongst the retail community.
Combined, hedge funds and banks have millions of shares working against the largest movie theatre chain in the world.
And in this article, I’m going to break down the most recently reported numbers.
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Bank of America bets against AMC Theatres
Bank of America increased their short bets against AMC in May, according to this Fintel report.
The bank now holds a total of 1,007,500 puts of AMC Entertainment Holdings, Inc. stock.
Retail investors were shocked to discover BofA was one of the top 10 financial institutions betting against the movie theatre chain last year.
And they haven’t left, but rather remained bearish on AMC.
The ball might be in their court in today’s bear market, but retail investors are already weary of the market’s integrity.
Last year, hedge funds sought out to destroy the movie theatre chain by shorting it to bankruptcy.
But retail investors put a stop to the madness – saving AMC Entertainment from collapsing, and inflicting billions of dollars in damage to short sellers.
Retail investors even closed their bank accounts with Bank of America after discovering the bank was betting against the beloved movie theatre stock.
Meme stocks were no joke.
Corporate fraud and corruption were exposed, retail made money, and the media lost all credibility.
But Bank of America isn’t the biggest bear when it comes to AMC stock.
Here’s a list of other banks and hedge funds going short on AMC.
Institutions shorting AMC stock
#1. Susquehanna – 11,004,100 shares short
#2. Citadel – 4,889,900 shares short
#3. Goldman Sachs – 2,785,00 shares short
#4. Group One – 2,221,900 shares short
#5. 683 Capital – 1,992,600 shares short
#6. Bank of America – 1,007,500 shares short
#7. Wolverine Trading – 921,400 shares short
#8. Piction Mahoney – 500,000 shares short
#9. JP Morgan – 400,000 shares short
None of these institutions have closed their positions in AMC.
One hedge fund that was removed from the list is Sculptor Capital LP – the institution closed their small position at a loss this year according to Fintel.
Anchorage Capital closed last year after betting against AMC.
The hedge fund held 4,000,000 puts prior to shutting down.
Even Gabe Plotkin’s Melvin Capital is shutting down in June after GameStop crippled the short seller last year.
Bank of America might have increased their short position in AMC, but is it wise to bet against retail?
Retail has power, and I think retail is about to prove it again very soon.
I’m interested to learn what you think.
Leave your thoughts in the comment section of the blog below.