Tag: AMC Threshold Securities List

AMC Is Now Back on The Threshold Securities List

Market News Daily - AMC Is Now Back on The Threshold Securities List.
Market News Daily – AMC Is Now Back on The Threshold Securities List.

AMC Entertainment (NYSE:AMC) is now back on the NYSE Threshold Securites List.

The last time AMC made the list, it stayed on it for an entire month.

This is the third time the security has been listed on the threshold list this year.

In April, The SEC (Securities and Exchange Commission) violated the 13-day threshold rule, which states that a broker-dealer with fail-to-deliver positions for 13 consecutive settlement days must immediately close out the ‘FTD’ position by purchasing shares in the open market.

AMC should have seen big buying pressure but instead plunged after it was removed from the threshold list.

CEO Adam Aron announced that the company has contacted both FINRA and the NYSE to look closely at the trading of their stock.

“Many of you, and we, are aware that AMC Entertainment has been on ‘The Threshold List‘ for 3+ weeks, indicating a number of FTDs.

Some of you may be pleased to learn that we have contacted both FINRA and the NYSE asking that they both look closely at the trading of our stock.”

But investors never received an update after the announcement and the stock is back on the threshold list, alerting investors of high FTDs and continued naked shorting in AMC stock.

Market News Daily - AMC Is Now Back on The Threshold Securities List.
Market News Daily – AMC Is Now Back on The Threshold Securities List.

FTDs, or Failure-to-deliver occurs when one party in a trading contract (whether it’s shares, futures, or options) fails to deliver on their obligations.

These failures derive due to buyers not having enough money to take delivery and pay for the transaction at settlement.

In the case of sellers, it means not having the goods to meet that transaction.

Failure-to-delivers can occur in options trading or when selling short naked, per Investopedia.

Nasdaq Has Reported Unusual Put Option Activity in AMC Stock

Back in April, Nasdaq reported very unusual AMC Entertainment put option activity.

According to the report first picked up by Fintel, a rather strange $781.04K block of Put contracts in AMC Entertainment was bought with a strike price of $11.00/share, expiring on April 21, 2023.

Fintel tracks all large options trades, and the premium spent on this trade was 5.07 sigmas above the mean, placing it in the 100.00 percentile of all recent large trades made in AMC options.

Today we’re seeing big sell walls around $4-$5 per share.

But retail investors have noticed AMC Entertainment stock has experienced unusual put option activity ever since the ‘meme stock’ frenzy in 2021.

The derivatives market has been a back door for institutions to flood AMC stock with put option contracts, in one form suppressing the stock from rising or simply having a greater advantage than average investors.

Still, the unusual put option activity in AMC Entertainment stock shows just how aggressive institutions are fighting to keep shares from rising.

AMC stock is currently up +3% this year-to-date but down more than -71% in the past year.

Related: AMC FTDs Reaches New High Records This Year

Extremely High Cost to Borrow Fees

AMC’s max cost to borrow reached more than 1,000% (1.05k%) in April before deflating.

However, AMC’s cost to borrow is quickly rising, currently being reported at 400%, respectively.

The cost to borrow, per Ortex, is the annualized percent of interest on loans, typically borrowed by brokers and hedge funds.

This percentage figure may change on a daily basis and level out through its ‘cost to borrow average’.

According to the Securities Lending Agreement (SLA), this fee must be charged prior to the stock being borrowed.

Short sellers rely on brokers to have stock shares available to borrow. 

AMC Entertainment is in high demand, both for short sellers and long investors.

AMC’s short interest has also risen in the past week; currently at 24%, updated daily here.

Hedge funds continue to bet against the movie theatre chain company although AMC Entertainment is no longer a screaming short.

High box office numbers today are indicating big growth for AMC Entertainment.

Analyst Names AMC Amongst Most “Squeezable” Stocks

S3 analyst says AMC Entertainment and GameStop (NYSE:GME) stock have the highest squeeze potential in the market.

“As the broader stock market has been on a tear for about a month, things are looking grim for investors with big short positions in stocks like AMC Entertainment Holdings Inc. and GameStop.”

But retail investors point out that the constant manipulation in these stocks is keeping shares from rising exponentially.

And they’re right — naked shorting, dark pool trading, off exchange trading, spoofing, and short and distort have all played a role in suppressing AMC and GameStop shares.

We’re now seeing AMC back on the NYSE Threshold Securities List for a big reason.

Yahoo Finance says the reason why stock tickers make it on the NYSE Threshold Securities List is due to market manipulation through naked shorting.

Mainstream media and Wall Street personalities have managed to brush aside this very big issue in the market but it’s no longer a secret that counterfeit shares are used to provide ‘liquidity’ in the market.

The incredible thing is that ‘meme stocks’ aren’t the only stocks in the market experiencing naked shorting or price manipulation from short sellers.

This is a very big problem; how long will the SEC and other regulatory bodies continue to ignore it?

Read: “The Game is Rigged” Says Ex-Citadel Data Scientist

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Market News Today - AMC Is Now Back on The Threshold Securities List.
Market News Today – AMC Is Now Back on The Threshold Securities List.

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AMC Stock Plunges After Being Removed from the Threshold List

AMC Removed Threshold List
Market News Daily – AMC removed from threshold list.

AMC Entertainment (NYSE:AMC) stock plunges after being removed from the NYSE Threshold Securities List; this should not be happening.

The SEC (Securities and Exchange Commission) violated the 13-Day Threshold List Rule after AMC remained listed for more than 25 consecutive days.

AMC CEO Adam Aron said on Twitter he asked the NYSE and FINRA to look into the stock due to the alarming amount of FTDs in market.

But the CEO never publicly demonstrated a letter confirming the bold claims.

Videos have surfaced of the CEO scrutinizing any talks about market manipulation during an in-theatre event.

Yahoo Finance published a segment on AMC being on the threshold list highlighting the cause being due to naked short selling.

“Market Makers, like those at the New York Stock Exchange, Citadel is one, they can engage in naked short selling and it’s perfectly legal, it’s part of their market making duties to provide liquidity for a stock.”

The problem is naked short selling isn’t ‘legal’ and it takes advantage of a company’s stock price by driving shares down even when demand from retail buyers is high.

Naked short selling isn’t supposed to be illegal from a regulatory perspective and legal whenever Wall Street decides it to be.

Shares of AMC Entertainment fell -15% on Tuesday.

AMC stock went from being up more than +110% this year to now being up only +18%.

What Should Have Happened Instead?

The 13-Day Threshold Rule states that a broker-dealer with fail-to-deliver positions for 13 consecutive settlement days must immediately close out the ‘FTD’ position by purchasing shares in the open market.

AMC’s share price should have surged in a buy-back or ‘repurchase’ of shares in the lit exchange.

AMC FTDs spiked up to more than $36 million in FTDs last month, through the report is still in the process of updating via T+35.

Market News Today – AMC removed from threshold list.

FTDs, or Failure-to-deliver occurs when one party in a trading contract (whether it’s shares, futures, or options) fails to deliver on their obligations.

These failures derive due to buyers not having enough money to take delivery and pay for the transaction at settlement.

In the case of sellers, it means not having the goods to meet that transaction.

This is a direct result of naked short selling in a company stock, according to Yahoo Finance.

So far, there’s been zero positive impact on the price from AMC being removed from the threshold list.

The only thing shareholders can do now is wait for the approved proposals to go into effect after AMC’s lawsuit has concluded.

Leave your thoughts on what’s happening with AMC today

The company has been through a lot, and so have shareholders.

Shareholders are either more level-headed than they ever were before, or more fearful — and it’s quite easy to see on social media.

How is AMC Entertainment standing in your eyes?

Is this just another bump on the road like we’ve seen in the past with AMC stock?

Or does it seem a little more serious?

Leave your thoughts below and share this article to get your voice heard.

Market News Published Daily

Market News Today - AMC removed from threshold list.
Market News Today – AMC removed from threshold list.

For stock market, business news and updates, join the newsletter to receive weekly market news and notifications straight to your inbox.

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