Tag: AMC exit strategy

An Excellent AMC Exit Strategy Guide: Short Squeeze

An excellent AMC exit strategy guide: Short squeeze
When should I sell my AMC stock?

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.

franknez.com amc exit strategy

Welcome to Franknez.com – the blog where you can digest content on stocks, crypto, market news, and more.

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.

Trey’s Trades has given his personal opinion in the past saying 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.

Disclaimer: Please keep in mind that any number being used below is to provide the community with examples. The key here is to simply have a plan and to provide you with perspective.

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 and above, should share prices get there of course.

Again, we will find more out as this big 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.

Related: How Big Could an AMC Short Squeeze Potential Surge?

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.

I wrote how I think we’ll know here, based on the short interest data.

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 $5,000 then you’d have to sell at $50 per share.

The same applies if you’re holding 5,000 shares and your goal is to make $250,000. Your sell target would be $50 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.

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 $40, $50, $60, $70, $80, $100 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 $60 as being your absolute bottom with your price target being $200.

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
  • Short interest and utilization plummets
  • 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, but make sure you set a realistic share price goal and have the proper number of shares.

If it’s to make $1,000,000 then you can certainly do so.

So, although everyone’s AMC exit strategy will be a little different, most retail investors are diamond handing the stock.


For instance, if AMC squeezes up to $300 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 technically 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

Do not panic sell.

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.

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.

Twitter | Instagram | Facebook | YouTube

You can support the blog on Patreon πŸŽ‰

How Soon Will Hedge Funds Get Margin Called? (AMC)

Citadel Margin Call, When will hedge funds get margin called
When will hedge funds get margin called? Citadel Margin Call

Retail investors all want to know. How soon will hedge funds get margin called?

I’m going to be updating this article with new information as it becomes available so be sure to bookmark it.

If you’re investing in AMC or GameStop, this article will prove to be of value to you.

You’ve done an outstanding job. You’ve bought the rips and dips but most importantly, you’ve held on.

Let’s go over the data that is currently available regarding margin calls and hedge funds.

There are some incredible things happening behind the scenes that you need to know.


Welcome to Franknez.com – the blog keeping retail investors informed in stocks, crypto, and market news.

Lets get started!

But first, I want to give a massive thank you to my readers.

A lot of you have just recently started following me and I’m very grateful for your support.

I love seeing the community sharing FrankNez content on social media. It brings me great pleasure to know I’m providing value in your daily lives.

What is a margin call?

I published a piece fully dedicated to what a margin call is in the stock market world some time ago.

In short, a margin call occurs when the value of an investor’s brokerage account falls below the broker’s required amount.

This is when a broker demands that an investor deposits additional money into their account so that it meets the minimum requirement.

A margin call is usually an indicator that a security (asset) held in the margin account has decreased in value.

When a margin call occurs, the investor must either add funds to their account or liquidate (sell) some of their assets in that account.

Why does a margin call occur?

  • It may occur when an account runs low on funds usually as a result of a losing trade
  • A margin call occurs when a demand for additional capital is required to meet the minimum margin requirement
  • Brokers may force traders to sell assets, no matter the current market price, in order to meet the margin requirement if the trader does not deposit the funds

If you’re a new retail investor and have recently joined the ape community then you’ve more than likely heard the term margin call before.

A margin call is basically a 50/50% chance a short squeeze may occur on the spot.

However, even if hedge funds are able to keep enough capital in their margin accounts to keep them afloat, at some point they’ll have to cave in.

Hedge funds have lost billions of dollars and this game is only costing them more money each day that passes.

Bloomberg News on Gary Gensler / Margin Calls

Margin call hedge funds

In this video, Bloomberg News discusses Gary Gensler, the new SEC chairman’s concerns of overleveraging and manipulation in the stock market.

This five minute video is important to log because it demonstrates and acknowledges the concerns in the market.

Perhaps the SEC was incompetent in the past to say the least. But it looks like we might be looking at some change here community.

And although this particular video was published on May 6th, below are some things Gary Gensler is already proposing in order to protect retail investors and the overall market in general.


SR-NSCC-2021-002 AMC automatic margin calls

This proposal from the SEC is massive if it gets approved.

The SEC has heard you and they’ve been looking into hedge funds overleveraging their positions in AMC stock and other ‘meme stocks’.

This proposal would allow an automatic margin call system to margin call hedge funds with overleveraged accounts.

This margin call system will essentially target short sellers on a daily basis and identify whether they are required to raise margin minimums or liquidate their positions.

SR-NSCC-2021-002 APPROVED 6/21/2021

SR-NSCC-2021-002 APPROVED margin calls
SR-NSCC-2021-002 Approved

This proposal was delayed after its initial approval date.

However, as of today the proposal has gone through and should be in effect in the coming weeks.

However, as long as short sellers are able to keep up with their margin requirements then this regulation is rather neutral.

A lot of these rules being put into place play in our favor the more money short sellers lose.

Total Return Swap AMC

The SEC and FINRA have gotten together to review the activity of ongoing overleveraging in the stock market.

Hedge funds could soon face total return swaps per Gary Gensler, SEC chairman.

In a total return swap, the payer (hedge fund) must pay the interest on the underlying assets, plus any appreciation in the market value of the asset.

This sounds a lot like shorts paying all short borrow fee owed on top of the market value of naked shares they’ve traded.

13-F filings and short selling disclosures

Citadel Margin Call - SEC cracks down on hedge funds
Citadel margin call – SEC cracks down on hedge funds

There’s a strong possibility that hedge funds also face 13-F filings. This filing will provide the SEC with insight on equity and dark pool disclosure.

Everything now seems to be falling right into place despite the continuous short laddering.

The SEC voted 3-1 and approved the hedge fund disclosure proposal on January 26, 2022.

When will hedge funds get margin called?

Charles Schwab has recently raised margin requirements for both AMC and GME stock.

This means that if they are unable to keep the minimum cash required in their margin accounts, they’ll be required to liquidate some or all of their positions!

This would create massive price action to trend in an upwards position.

We know that short sellers are losing millions of dollars every day.

Ladies and gentlemen, this is simply a waiting game.

The point is going to come where they can no longer afford to be negative each day.

This movement is about to get on a whole other level of excitement.

The fundamentals to this AMC short squeeze have not changed.

All retail investors will have to do is hold until short sellers cave in and close their positions willingly, or brokers margin call them.

Charles Schwab raises margin requirements

Charles Schwab raises margin requirements
AMC Margin Call

The broker is adjusting 100% margin requirements for AMC on all long positions, and 200% on short term positions.

As for GameStop, the margin requirement is 100% on all long positions and a whopping 300% on short term positions.

All this essentially means is that short sellers will be required to have more cash at hand as collateral.

So, not only are hedge funds losing a lot of money every day but are now being required to put enough cash into their accounts to cover their entire positions if need be!

You know what happens if they can’t cover right?

That’s right, margin call.

Instant liquidation of their accounts resulting in the MOASS we’ve all been waiting for.

Margin calls will result in a short squeeze

At first we might experience what’s known as consecutive gamma squeezes.

These are usually triggered by high volume in the market due to expiring call options in the money or very high purchasing days.

As more short sellers and hedge funds with larger short positions in AMC stock begin to cover, we will begin to experience the beginning of a short squeeze.

A short squeeze could last several days to several weeks.

During this timeframe, the stocks price will continue to skyrocket as more short positions are closed.

It really does feel like we’re coming to an end here.

This new beginning is going to change millions of people’s lives.


Proposition NSCC-2021-010 allows the NSCC to act as a third party lender to oversee every transaction between lenders.

It prevents short sellers from using naked shorting strategies and from creating FTDs.

This is one of the biggest AMC news yet regarding the stock.

It’s been delayed but should go into effect this new year.

The NSCC is also requiring that short sellers have more cash at hand to limit overleveraging their positions.

When should I exit my position in AMC?

I wrote an AMC exit strategy guide to help the community make a strategized decision on how to sell when AMC squeezes.

I do want to relay that this is only my take on it.

Many of you already have your own exit strategies, I understand this.

Regardless, it’s there if you need it and would like insight from a different perspective.

And lastly . . .


If you gained value from this article be sure to share it with the rest of the community.

Thank you to everyone publishing this information on Facebook, Twitter, Reddit, and on Discord groups.

If you would like to support the functionality of the blog, you can do so on Patreon where you will also gain access to exclusive Frank Nez content such as my stock and crypto purchases.

Read: Here’s why people are buying AMC stock: Investors guide

Twitter | Facebook | Instagram | YouTube

Watch the LATEST Topic Discussion on YouTube

Subscribe to the channel so you don’t miss the next topic discussion this week!

© 2024 Franknez.com

Theme by Anders NorenUp ↑