AMC’s high short interest data tells us AMC’s next price runup will be higher than its previous run from last year.
The movie theatre chain company reached an all-time high of $72 per share when a few short sellers began to close their positions in June of 2021.
The same executive order that triggered margin calls in January and in June of last year is going into effect again this June.
Executive order 14032 (formerly 13959) prohibited financial institutions from using Chinese securities as collateral – read more about it here.
So, how high will AMC’s next price runup go?
Let’s discuss it below.
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Short sellers have dug a deeper hole
Why is AMC going up?
Short sellers have borrowed more shares to short the stock than they did back in January and June when the stock ran up to $20 and $72 per share.
These shares on loan eventually have to get returned back to the lender (by buying back the stock).
This buying pressure will create momentum, driving AMC’s share price up.
How high AMC’s next price runup goes will depend on how many shorts close their positions.
When AMC surged to $72 per share in June, it had roughly just over 100 million shares on loan and a short interest of 24% before falling to 20%, then 14%.
As long as AMC has a high short interest, it’s a short squeeze play.
But there are just way too many factors to determine how high AMC’s next price runup will go.
The percent of shorts closing being one.
The more the short interest drops, the higher we can determine AMC’s share price will skyrocket.
AMC to $100? AMC to $1,000? AMC to $10,000?
But what prices are realistic?
Theoretically AMC has incredible potential based on DD done by many intelligent retail investors.
Apes have created simulations allowing them to see a variety of price levels and possibilities, mainly calculating synthetic shares into the equation.
However, regulators have failed to address synthetics or hold institutions accountable to close these synthetics.
When a law is passed holding institutions accountable to close these synthetics, it will be EPIC.
AMC to $100 per share may only require some short closing.
We know this because of the ride to $72 per share.
Short interest dropped approximately 10 points from 24% to 14%.
14% is still a relatively high short interest, another 10 points from 14% would leave AMC with 4% short interest left – nearly done.
But doubling short covering doesn’t mean double the all-time high.
It could triple, quadruple or even 10X because of individual short positions in AMC.
There are just too many factors out there that limit us identifying exactly how high AMC’s next share price will go.
You may hold to any number you desire, but don’t burn yourself.
Keep an eye out on the data and have a strategy.
Creating a strategy
Every investor should have a strategy and have a plan to profit.
Your selling point will be different than another fellow apes’.
Don’t bag hold on the journey to $1MM per share – but rather accumulate the number of shares that will multiply your profit to a specific and desired goal.
In the end, bulls make money, bears make money, but pigs get slaughtered.
As AMC’s next price runup begins to take off, we’ll need to keep an eye out on the short interest (updated daily here) to identify whether it’s ‘the big one’, or merely small, short covering.
And as much as $1,000, $10,000, and $100,000 per share seems incredible, those things are out of your control.
Don’t play the passive game.
Focus on what is in your control – increasing your multiplier and playing to win.
The community should throw out the question “how high will AMC squeeze?” and focus on profiting BIG and keeping an eye out on more price runup potential.
For example, AMC may have a big runup as executive order 14032 goes into effect next week, but the order may be amended (moved) shortly after.
If amended, this would mean AMC will have another price runup in the future where investors can profit from (again).
Everyone’s strategy will be different – just make sure you have one.
I’d love to hear your thoughts on the topic.
Leave your thoughts in the comment section of the blog below.