Retail investors are strategizing a way to short squeeze AMC stock. What does this mean? It means hedge funds lose billions of dollars and the average investor has the potential to cash in life-changing numbers.
For the new retail investor that cut their loses as the stock was going down, well you might have just gotten off at the wrong train stop.
Forums are beginning to shed paper hands, or newbie retail investors who cut their loses before the objective, or who took early profits of AMC.
So, how are retail investors successfully investing in AMC stock and why has the stock hit a new level of support? Here’s what we do know.
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Lets get stared!
Why AMC? What’s so special about this stock?
AMC is currently the most shorted stock in the market. This means hedge funds and short-sellers are betting on AMC Entertainment to completely vanish from the face of the earth.
However, r/wallstreetbets took the opportunity to pump the price action by doing exactly what Keith Gill did with GameStop (GME).
AMC was on StockMarket’s #1 place for the most shorted stock in the market but it seems they’ve taken it down for some strange reason.
In the midst of financial history
What we’re experiencing today ladies and gentlemen is a financial war between retail investors and short sellers.
Investing in AMC has uncovered just how corrupt our financial system is. With this being said, hedge funds will no longer be able to get bailed if retail investors win this war.
This is exactly why hedge fund partners are doing everything they can to steer the masses from investing in AMC. We’re certain you’ve seen bogus headlines everywhere online.
What are retail investors doing that’s keeping AMC afloat?
AMC experienced a gamma squeeze when it hit $20 per share back in late January where it gradually plunged back down and met a level of resistance at $5 per share.
Although we’ve recently seen AMC share rise up to $11 after hours, it looks like it has established a second level of resistance at $8 per share. What we’re seeing here are steps of resistance that are gradually increasing.
So, how are retail investors pulling this off?
Easy, retail investors continue to hold their positions. They are not selling and they are even buying the dips.
Short-ladder attacks from shorts might have caused new retail investors to sell early, but not the majority. The majority of retail investors holding AMC positions are looking to squeeze the shorts out of their positions.
And it’s only a matter of time before short-sellers close their positions due to the accruing interest on borrowing AMC shares.
Is this what’s going to cause an AMC short squeeze?
Absolutely. Retail investors obtained all the knowledge they need to make a short squeeze like GameStop’s possible.
The answer to how to successfully invest in AMC? Buy the dip (market on red) and hold your position (hold the stock).
How high can AMC share price go up to?
Financial experts are speculating the stock price can go as high as the shareholder demands.
In fact, hedge funds can end up going bankrupt due to two major plays. 1. the accumulating interest on the borrowed shares and 2. retail investors conviction to hold the stock.
This means that if you own AMC stock and continue to hold throughout the short-term loses and gains, you now hold a stock that short-sellers eventually need to buy back to cover their positions.
And guess what? If you don’t want to sell it to them for $15 that’s okay. The price will go up and if you decide you don’t want to sell it for $50, that’s fine too.
This is how retail investors are successfully investing in AMC. They’re buying the dips and continuing to hold their positions until the stock price continuously experiences gains and meets new levels of support.
Is it too late to get in on AMC stock?
If you’re like most retail investors who are speculating the stock price to rise anywhere from $100-$1,000+ then it is not too late to get in on AMC.
See, retail investors holding AMC positions aren’t selling at the sight of $20 or even $50 per share. Their vision has to do with life-changing numbers, not a quick profit.
How soon will we see a short squeeze?
There are many speculations to when a short squeeze will occur.
Right now we know that AMC is the most shorted stock in the market and hedge funds don’t want people investing in it.
We also know that shorts will be covering their positions very soon due to the accruing interest on the shares they’ve borrowed. Depending on how many close their positions, retail investors can expect a series of gamma squeezes that lead to the inevitable short squeeze.
Short’s can hold their positions as long as they want to so we can’t say for sure when any sort of squeeze will happen. However, the borrow fee interest on shares they’ve borrowed is steadily increasing. In a month we’ve seen this interest go up from 3% to a whopping 9%!
So they’re holding alright.
Retail investors will need to be patient if they are to see a full on squeeze like that of GameStop’s, if not bigger.
Are you an AMC shareholder?
Consider sharing this post with a fellow ape. With a ton of backlash online from hedge fund partners, the community can use some positive articles.