Tag: Momentum Trading (Page 1 of 3)

How To Trade Options in the Market With a 9-5

February 13, 2023 /
Options Trading for beginners
Are you ready to trade options? Here’s what you need to know first.

There are many ways to earn money outside a 9-5 but multiplying your money at will through the market provides you with another type of freedom.

If you’re like me, you probably hold traditional long-term stocks, some crypto, but have also been interested or curious about options trading.

Options trading seemed intimidating to me a year ago.

But after many months on and off of researching it, I’ve finally decided to apply the knowledge I’ve gained.

And it’s changing everything very quickly (options trading course on Patreon).

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Why options trading?

how to trade options for beginners

Options trading allows you to make money at will, no matter if the price of a stock is on an upwards or downwards trend.

Differentiating calls vs puts is going to help you identify which strategy will best suit you as a trader.

While some traders use one or the other, many traders also use both strategies in different plays.

Trading options isn’t as risky as most people might initially think it is.

For starters, buying a call or put option means you can only lose what you invest in.

Another pro to trading options is you can earn money every day, or every week if your margin account has less than $25,000.

New options traders will find you do not need a lot of money to begin trading options.

To get started, you’ll need to open an options trading account and you can fund it with a few hundred dollars or less for starters when learning how to trade.

Reason why you shouldn’t limit yourself to a 9-5

9-5
Options trading for beginners.

A 9-5 might feel like you have some sense of security, but the reality is a 9-5 is never truly 100% secured.

Learning new skills will allow you to increase your income outside your 9-5 without having to take the risks of entrepreneurship.

Two of my startups failed while I was employed, the third one wasn’t scalable, and finally my first real business has been growing since 2020.

But even then, I knew that I didn’t just want to earn money per project.

I asked myself, “how can I earn money on a regular basis?”

That’s when I began to study options trading before actually committing to making my first trade.

The hardest part for me was taking action after I had digested the knowledge on how to make my first trade.

But let me tell you, once I made my first trade, I got a rush.

Because I wanted to do it for so long and I was finally doing it.

I had a strategy in mind I always thought of using and I finally began putting it to work.

I made gains on my first trade, gains on my second, and lost a little on my third.

But by my sixth trade, I was up 10.57%.

If you’re a long-term investor you’re lucky to see these gains by the end of the year.

Here’s why these gains were so important

If you’re thinking to yourself, what’s so significant about +10%?

Well, you’re missing the macro vision here.

Think about how often you get a raise at work, are you even in a position to get a raise at work?

Imagine you getting paid 10% more one day at work, that be great wouldn’t it be?

Now let’s break down how much 10% is when comparing it to a few different brackets when trading options.

10% gains on $200 is $20 more per day / additional $600 per month

10% gains on $500 is $50 more per day / additional $1,500 per month

And 10% gains on $1,000 is $100 more per day / additional $3,000 per month

Now that’s a lot better, right?

If you are able to make $1 trading options then you can make $10 trading options and $100, and so on.

And while not every trade will be a 10% gain day, some will be bigger days and some less.

This is where strategy and due diligence will play a big part in your success rate.

How to prepare for options trading

options trading for beginners.
Options trading for beginners.

Read the differences between calls vs puts.

I break down the differences in this article and make it very easy for beginners to understand how they work.

Call options are bullish bets a stock will go up while put options are a bearish bet a stock will go down.

You will also want to familiarize yourself with the meanings of OTM (out the money), ITM (in the money), and ATM (at the money), also explained in this same article.

And lastly, you will need to use a broker that allows you to trade options.

Webull has to be the best platform to trade options as it has one of the easiest navigation layouts in the game.

NOTE: you will need to open a margin account and not a cash account to trade options with Webull.

If you’re part of the community newsletter, you received an email regarding a new 3-part video options trading series I have coming very soon.

I’ve completed Part 1 and Part 2 already and will be publishing a video on my personal day-trading strategy in August as Part 3.

I show you the basics; how to buy a ‘call’ option and ‘put’ option step-by-step during a real-life trade.

I will wrap up the third video with the trading strategies that I personally use that no one else is talking about.

Some of you caught the clip I posted on my IG story this morning on calls that printed from CEI.

This 3-part video series will be made available in our private community if you’re interested in learning more about trading options.

Here’s what happens when you trade options

Options Trader - FrankNez
Options trading for beginners.
  1. You gain control of your finances
  2. A confidence emerges that was previously dormant
  3. You unlock the ability to multiply your money at will

Something clicks when you realize that you can literally turn money into more money without relying on an employer.

Those of you reading this who already trade options know exactly what I mean.

By the end of my course, most of you will be able to wake up every morning and make a trade that will yield gains.

Join our private community here to be part of this experience.

The Best Indicators to Trade SPY // Lesson.

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AMTD Digital Inc. (HKD Stock) Surges 311% on Wednesday

September 15, 2022 /
AMTD Digital HKD Stock
Market News: HKD Stock is skyrocketing again

HKD Stock surged a massive 311% on Wednesday when the stock moved from the open of $46.01 to a close of $189.42.

AMTD Digital Inc. had skyrocketed from $13.54 to more than $2.5K in only a matter of two weeks when it peaked in August.

Sources say the stock was halted 11 times on Wednesday due to its volatility.

The Hong Kong-based financial services firm has soared more than 32,000% following its IPO in July.

And heavy buying volume seems to be triggering these massive moves.

Is there something retail can learn from this?

Let’s discuss it.

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Volume rises by more than 5,500%

HKD stock’s volume rose by more than 5,500% its daily average volume of 377K when it reached 1.5 million on Wednesday.

AMTD Digital Inc. grew nearly $27 billion in market value.

The company has approximately 187.44 million shares outstanding, significantly less than that of GameStop’s (304m) and AMC Entertainment’s (516m).

Interestingly enough, pre-IPO shareholders, directors and executive officers are subject to a lockup agreement that prevents them from selling shares until January, according to the July 15 prospectus.

AMTD Digital’s shares were also among the most actively traded stocks on the Fidelity platform on Wednesday.

Will the stock keep rising?

I’d love to hear your thoughts down below.

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HKD Stock Squeezes from $13.54 to More Than $2.5k

August 2, 2022 /
HKD Stock Short Squeeze
Market News: HKD stock surges more than +20,000% after IPO

HKD stock squeezes from $13.54 per share to a whopping $2,521.72 per share in just two weeks.

The stock traded a low of $13.54 on July 19th, gradually growing in the coming weeks leading up to today’s massive price runup.

Brokers halted HKD where it stopped trading around $2,200.01 per share and then again at $1,800 per share.

The SEC then intervened and suspended the stock, something that happens due to serious concerns about the activity of a company’s stock, operation, or other financial information.

What is HKD stock and why did it have this incredible squeeze?

Let’s discuss it down below.

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What is HKD stock?

AMTD Digital, Inc., also known as HKD stock, was founded in 2019 and is headquartered in Singapore.

AMTD Digital is the integrated digital solutions platform of AMTD Group, an Asian financial services centric conglomerate, per Crunchbase.

Headquartered in Singapore, AMTD Digital strives to build a one-stop, comprehensive, cross-market, innovative digital financial services platform.

AMTD Digital aims to leverage its scarce and comprehensive digital financial licenses and offer integrated digital banking, digital insurance, digital asset exchange, digital payments and remittance, and other digital licensed businesses across Southeast Asia and in the Greater Bay Area.

HKD stock caught the attention of investors after share prices soared to extreme levels in only a matter of weeks.

The stock is currently halted and suspended by the SEC as they investigate the price surge.

HKD stock IPO date

HKD Stock joined the stock market on Friday, July 15th where it more than doubled its IPO price.

AMTD Digital soared +142.59% out of the gate despite Friday’s volatile trading day.

The company had only raised $124.8 million through its initial public offering.

Its market cap soared past $407 billion in just two weeks since its IPO date.

Why did HKD stock go up?

why did hkd stock go up

AMTD Digital has a low share float of just 19 million shares.

That means when there’s overwhelming demand for the stock, and there are few sellers, the stock price goes vertical.

According to data from Fidelity, Tuesday’s top traded stock among its customer base was AMTD Idea Group.

Business insider says it looks like buying has been from retail, but I highly doubt that as Reddit forums have investors questioning why no one caught this.

If I were to take a guess, it was an institutional pump and dump.

I’d love to learn what you think.

Leave your thoughts in the comment section of the blog down below.

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Will Redbox Stock Keep Going Up?

June 13, 2022 /
Will Redbox stock keep going up?
Will Redbox stock keep going up?

Redbox stock has been having an incredible rally despite the current market situation.

The stock is up more than 430% on the monthly chart.

Today RDBX finished up 15.68% but saw gains up to 30%.

Retail investors want to know, will Redbox keep going up?

Let’s discuss it.

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Redbox Stock outperforms the market

The stock market had one of the worst trading days in history today.

SPY stock was down almost 4% on Monday and the NASDAQ almost 5%.

Seeing the market today seemed unnatural – catastrophic almost.

But Redbox stock outperformed the market.

It closed today’s trading day with 55.3 million in trading volume from its average of 18.9 million.

Redbox has been exploding in the past month due to the massive surge of retail investors jumping in on this new ‘meme stock’.

It earns its ‘meme stock’ title due to Redditors discovering its incredibly high short interest, and short squeeze possibility.

Mainstream media is saying today’s rally was due to Redbox squeezing, but in order for us to track its short squeeze we’ll have to take a close look at the short interest data.

Will Redbox stock squeeze?

will Redbox stock squeeze?
Will Redbox stock squeeze?

Redbox stock currently has a short interest of 225.59%.

This is massive.

But mainstream finance platforms say RDBX stock squeezed today.

We will have to keep an eye out on this short interest percentage to determine whether shorts indeed closed some positions.

You will know shorts began to buy back shares if the short interest drops significantly.

Otherwise, the price movement could have simply been from big buying pressure.

AMC Entertainment stock saw gains up to 3,000% last year when some shorts began to close their positions.

GameStop saw gains upwards to 1,500%.

Redbox stock has only seen some 430% gains so far and has a much higher short interest than what AMC and GameStop had.

Will RDBX stock squeeze?

Just like we saw with AMC and GameStop, heavy buying pressure all at once may trigger short sellers to close, initiating a short squeeze.

How high will Redbox stock go?

Reddit: how high will Redbox stock go?
Reddit: How high will Redbox stock go?

Redbox has a high probability of reaching all-time high share prices.

The stock was hard to knock down despite the stock market heavily getting splattered.

While majority of the stock market was pulled down, Redbox stock finished the day green.

It’s always difficult to determine how high a heavily shorted stock such as Redbox will go.

This is primarily due to how many factors affect its share price.

The incredible thing is that it’s also costing short sellers a lot to short this stock.

RDBX has a cost to borrow of 636.42.

There’s no reason why anyone in the market should be able to short the stock this much.

It’s as if institutions did not learn from shorting both AMC and GameStop.

The short interest data in this stock is so high, there’s no doubt shorts will be getting burned on this one again.

I published an article on RDBX stock almost two weeks ago before it began to rally even higher.

If you’d like me to keep you posted on this ticker symbol, leave me a comment below.

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Related: Redbox Short Interest Updated Daily Here
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Is a New AMC Stock All-Time High Coming Soon?

June 4, 2022 /
AMC stock all time high
Market News: Is AMC stock about to hit a new all-time high soon?

AMC stock’s last time all-time high reached $72 per share.

The stock had surged more than 3,000% last year when retail investors bought and held the stock, squeezing some shorts from their positions.

As a result, Citadel and others lost billions of dollars, and Robinhood lost all trust along the way.

Mainstream media continues to attack the retail community and stock in short and distort campaigns – where media and short sellers collude to drive the price of a stock even lower.

So, while AMC Entertainment has now paved a path to recovery, short sellers have not left.

And the data that stood out when AMC surged to $20 per share in January and $72 per share in June, points to another massive runup.

Is a new AMC stock all-time high underway?

Let’s discuss it.

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AMC’s share on loan reaches an all-time high

AMC Shares on loan

When AMC stock’s all-time high reached $72 per share, it had roughly 102 million shares out on loan.

These are the number of shares being loaned to short AMC stock.

But short sellers did not stop shorting the world’s largest movie theatre chain.

No – instead they kept shorting it.

Today, AMC’s shares on loan have reached an ATH of almost 180 million.

This means short sellers have more shares on loan that need to be returned than they did when AMC’s all-time high hit $72.

These shares on loan eventually have to be returned back to the lender, and the only way to return them back is by purchasing the stock no matter the share price.

Short sellers have sold all these shares high as AMC’s share price has dropped for months, with many new positions holding unrealized profits.

But they’ll eventually have to close their positions, returning the borrowed shares back to the lender.

And when they do, AMC will run like it did last year.

AMC to the moon

AMC to the moon

AMC to the moon – the concept of AMC reaching massive heights as closing short positions skyrocket the share price.

But just how high will AMC stock’s new all-time high go?

Speculation has always depicted AMC reaching thousands of dollars per share due to the incredible amount of synthetics conjured up to short the company stock.

Could this be an ongoing, but controlled short squeeze?

TA (technical analysis) shows AMC’s next all-time high can reach upwards of nearly $300 per share.

Is it possible that each year regulators are dismantling this time bomb in order to prevent massive market disruption?

It’s an interesting idea, yet a highly probable scenario given just how overleveraged financial institutions such as hedge funds are on these plays.

If AMC stock is to reach extremely high numbers per share, I can only expect it will happen in increments, rather than in one blow.

I’d love to know what you think.

How soon will AMC stock go up again?

The entire stock market has been on a freefall, and AMC Entertainment stock is no exception.

Despite its incredible negative beta, institutions have been able to suppress the stock from moving upwards.

I’ve stated in several articles and videos that the market situation is following the SPY and NASDAQ very closely.

It’s the way for those in control to keep the market together.

AMC began to move up in late March reaching more than $34 per share before it was regretfully halted along with GameStop.

The market has been keeping these ‘meme stocks’ in check during this incredulous bear market.

Despite the market manipulation, not all hope is lost.

Margin calls are looming.

And institutions are about to lose an incredible amount of collateral due to executive order 14032.

Lack of collateral will result in the same margin calls that triggered AMC to run in January and June of last year.

Only this year, the collateral haircut is much greater, consisting of 70+ companies rather than 30.

We will see how this plays out.

What is your prediction for AMC in the coming weeks?

Leave your thoughts in the comment section of the blog down below.

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Related: How High Will AMC's Next Price Runup Go?
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Is There a High Chance AMC Squeezes This Week?

May 31, 2022 /
Is there a high chance AMC squeezes next week?
Will AMC squeeze next week?

Is it possible AMC squeezes this week due to the executive order that’s going into effect?

AMC finished the week strong up more than 20% last week.

The movie theatre chain surged almost 18% on Friday alone.

Stocks have been on a free-fall as the SPY and NASDAQ pull the entire market down with them.

However, both the SPY and NASDAQ finished up 6% last week which could indicate a potential reversal is underway.

There are very important things happening in the market right now, especially with AMC Entertainment stock and I’m going to go over it.

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It’s now costing short sellers a lot more money to short AMC stock

A major change has happened in the past week.

The cost to short AMC stock has dramatically increased from 2% to now 7.1%.

Short sellers are now paying more to short AMC stock.

This is a pattern long-term AMC shareholders are too familiar with.

AMC’s short borrow fee began to rise last year moments before the stock saw big price action.

An increasing fee incentivized a small percentage of short sellers to close their positions driving the stock price up.

Today, there are more short sellers in AMC than there were when the stock price soared to $72 per share.

AMC’s current reported short interest is 22.85%.

The number of shares on loan are at an all-time high meaning there are now more shares that have to be returned than there were during AMC’s run to $20 and $72 per share.

AMC has the perfect short squeeze setup.

And as the fee rises to short AMC stock, shorts will have to make the decision to either deal with it or close their short positions.

Related: Short Sellers Are Now Paying More to Short AMC Stock

Executive order 14032 will trigger margin calls

Executive order 14032 will prohibit institutions to use Chinese securities as collateral, which will result in large margin calls.

This executive order replaced 13959 from the Trump administration.

When executive order 13959 disarmed institutions with this collateral in January of 2021, AMC surged to $20+ per share.

The order was amended as stocks surged resulting in sharp declines, giving institutions this collateral back.

The amended date moved to late May, where we saw AMC reach an all-time high of $72 per share.

Institutions were then given their collateral back on June 2nd for a period of 365 calendar days.

This collateral will no longer serve institutions on June 3rd until the order is amended again.

This order could be the reason AMC squeezes next week, or rather the reason why we see large price movement very, very soon.

Only time will tell exactly how this executive order will affect AMC and other heavily shorted stock.

But the data is there, and the coincidence is far too big to simply ignore.

You can read more about executive order 14032 and get access to the government document here.

No dates, but the stars are aligning in retail’s favor

AMC squeezes next week

No matter how you look at it, another AMC surge is imminent.

It’s very possible the SPY also hit a bottom around the low $400 levels.

This means the stock market could be seeing a reversal very soon, granted that the SPY continues to break upwards.

A short squeeze play though, is different.

AMC’s short interest data is there, there’s no doubt this is indeed a short squeeze play.

And whether AMC squeezes next week or not, short sellers are in a very tough position right now.

The markets are bound to go up again.

Failing to close at these all-time lows could prove to be a very big mistake.

Retail investors, brace yourself – winter seems to be over.

I’m curious to hear your thoughts.

Leave a comment down below.

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Related: Here's Why It's The Perfect Time to Buy AMC Stock Today
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How High Will AMC’s Next Price Runup Go?

May 30, 2022 /
How high will AMC's next price runup go?
How high will AMC’s short squeeze go?

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.

franknez.com

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Let’s dive right into it!

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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%.

Today, AMC’s shares on loan have reached an all-time high of 173.61 million with a short interest of more than 23%.

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?

how high will AMC go
AMC short squeeze price prediction

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.

My advice?

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.

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Related: Is There a High Chance AMC Squeezes Next Week?
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Ken Griffin Attacks: “Pension Plans Destroyed by Retail Investors”

May 19, 2022 /
Ken Griffin on Retail Investors
Market News: Ken Griffin on retail investors

Ken Griffin accused the retail community of destroying teacher’s pension plans by taking down Gabe Plotkin’s Melvin Capital.

Melvin Capital is a hedge fund that was short on ‘meme stocks’ holding a large position in GameStop.

The company is scheduled to shut down in June after it had suffered a 50% loss in 2021, and an additional 20.6% in the first quarter of 2022.

Sources say Melvin Capital has already begun to liquidate its positions to pay back investors in cash.

In this Bloomberg exclusive, Ken Griffin plays a role of the victim, defending Mr. Plotkin and the hedge fund whose mission it was to bankrupt GameStop.

Ken Griffin’s Citadel is also short on AMC Entertainment – the hedge fund lost billions last year betting against retail.

Let’s discuss it.

franknez.com

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Let’s dive right into it!

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CNBC mourns the loss of Melvin Capital

CNBC says Melvin was one of the biggest victims from the meme stock frenzy last year due to its large short position in GameStop.

They say Citadel and Point72 had to provide Melvin Capital with a lifeline to stay above the water.

The hedge funds combined provided Gabe Plotkin with $2.75 billion in capital last year.

However, as things went south quick for Melvin, both hedge funds demanded the capital back.

Something Ken Griffin and his affiliates fail to mention.

Mainstream media has also danced around the fact that hedge funds planned to wipe American companies by overleveraging their short positions during the pandemic.

Success in doing so would delist AMC, GameStop, and other meme stocks from the stock market.

Betting against companies with intention to bankrupt them to the ground is no charity work.

It’s un-American and a nefarious practice that has dragged out for too long.

Ken Griffin blames retail investors

In the video below, Ken Griffin gives his thoughts on retail investors and the entire ‘meme stock’ phenomena.

Ken Griffin takes a jab at the retail community saying retail investors who aimed to bankrupt Melvin Capital also wiped-out pension funds from teachers.

But Ken, retail investors don’t get up in the morning and think to themselves, “let’s wipe out a multi-billion-dollar hedge fund.”

Melvin Capital lost because he went against retail – the first time in history the people fight back corruption in the stock market, and win.

Ken Griffin lost billions shorting AMC stock, the retail community is currently his biggest adversary.

AMC shareholders continue to buy and hold the stock until short sellers exit their positions, which will result in a short squeeze.

Today’s retail investors are armed with education, they understand what they hold and what it’s doing to hedge funds.

While Ken Griffin and affiliates might be pumping a narrative as victims, high profiles such as Elon Musk, Jon Stewart, and Ryan Cohen have stood up against short sellers.

For the first time in history, Wall Street is getting their a** kicked, and these hedge fund managers certainly do not like that.

Hedge funds should prepare for bigger losses

Institutions are about to lose a massive amount of collateral due to executive order 14032 in early June.

This presidential order is prohibiting Chinese securities to be used as collateral starting June 2nd, 2022.

It was responsible for initiating margin calls when AMC Entertainment stock rose to $20 per share in January, and $72 per share in June of last year.

With liquidity drying up in global markets, it’s going to be quite difficult for hedge funds to keep up with margin requirements on heavily shorted ‘meme stocks’.

Massive selloffs in the market have proved just how distressed financial institutions are.

We’re seeing for the first-time hedge funds begin to shut down as they take the lead in liquidity burn.

Retail investors have been the majority of buyers in today’s markets according to Bank of America.

Hedge funds are headed towards a larger train-wreck of disaster they cannot get off of.

As they continue to tank the markets, margin requirements go up thanks to DTCC B16845-22.

Hedge funds have lost control.

But I’m curious to know what you think.

Leave your thoughts in the comment section of the blog below.

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AMC’s Shares on Loan Are at An All-Time High

May 18, 2022 /
AMC's shares on loan
Market News: AMC’s shares on loan reach 157.87 million

AMC’s shares on loan have massively increased since its grand runup to $72 per share last year in June.

The movie theatre chain continues to be quite the attraction for retail investors as it is still heavily shorted.

The pandemic no longer threatens AMC Entertainment, and the company has improved drastically when it comes to fundamentals.

However, short sellers did not expect this to happen.

And now they’re stuck with millions of shares on loan that eventually have to be returned.

The results?

A short squeeze.

Let’s discuss it.

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AMC’ shares on loan reach 157.87 million

AMC shares on loan - AMC short interest
AMC shares on loan – AMC short interest

The shares on loan of a stock are the number of shares that have been borrowed and have yet to be returned.

We see this data when looking the short interest data of a ticker symbol to determine how much of the float is being shorted.

So, what does this mean?

AMC’s shares on loan essentially looks like debt to short sellers because they eventually have to return these shares back to the lender.

These shares amount to approximately 21.88% short interest (updated daily on the blog).

This is a very high short interest percentage – something mainstream media will not talk to investors about.

AMC’s short high short interest is what allowed it to reach $20 per share in January and $72 per share in June of last year.

Hedge funds lost billions, which is why mainstream media has focused on scaring retail investors out of their money by pumping out ‘DO NOT BUY AMC’ content.

Nothing has changed this year except AMC’s shares on loan and short interest keeps climbing.

AMC’s short interest was only at 20% when it surged to $72 – it’s now close to 22%.

Related: Free Live Daily Updates: AMC Short Interest Today

Is an AMC short squeeze on the horizon?

In recent articles I’ve said there is no better time to close short positions than today due to the bear rallies we’ve been having in the market.

The market has reached all-time lows providing short sellers with an incentive to close now before the market begins trending upwards again.

Unfortunately, new short sellers have jumped in on the hate bandwagon and are exposing themselves to very high risk.

Hedge funds have closed in the past year due to overleveraging their short positions in the market.

These are institutions who have lost billions of dollars and created major distress for real clients.

Individual short sellers should understand what they’re going up against when facing retail demand.

The fact is AMC Entertainment has the perfect short squeeze setup.

One can view short sellers as a nasty blackhead that needs to come out.

It’s there, it just has to get squeezed out.

Gross.

But you get the point.

AMC’s squeeze potential is big, it’s just a matter of when will it happen.

It’s very possible

If you’re an avid reader of my content, then you know all about executive order 14032.

Now, I don’t want to sound like a broken record player, but this could be a very big deal for AMC stock.

We saw this executive order play a very important role for AMC last year when it resulted in its January and May/June price runups.

The order is to go in effect on June 2nd, 2022.

And while the community doesn’t like to call out dates, expect something in June anyway.

Only you can control your emotions.

Optimistically, community members understand that whether executive order 14032 creates a massive impact or not, AMC is still a short squeeze play.

I’m interested to know what you think.

Leave your thoughts in the comment section of the blog below.

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Related: What's The Probability of AMC Squeezing in June?
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