AMC is the #1 play in the stock market right now and The Fool along with other hedge fund affiliate partners don’t want you to dig deeper. Countless headlines are being published trying to scare new retail investors out of their money.
AMC is currently the heaviest shorted stock in the market right now. The short interest keeps going up and the number of shares on loan is a staggering 99 million shares.
I’m also going to go over what the utilization in AMC stock means. We’ve heard this many times over on Trey’s Trades videos so I’m going to break it down for you smooth brained apes.
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AMC’s short interest keeps rising
If you’re following Matt or Trey on Twitter you’ve seen they consistently post the updated short interest number. What’s AMC’s current short interest? It’s currently 18.93% and rising.
The mainstream financial platforms will not tell you this. This information is being kept from the public but apes in the community will share this with you. It’s your right.
What is short interest in stocks?
Short interest is the percentage of shares of a particular stock that has been sold short but have yet to be covered or closed.
With AMC, 18.93% of the outstanding shares are being shorted and have not been covered. AMC’s current outstanding shares according to YCHARTS is 501.78 million. This means approximately 94.9 million shares are being shorted and must be covered.
Just to put things into perspective, Apple’s short interest is 0.65%. AMC short interest is high and it has been climbing all year. It’s the heaviest shorted stock in the market.
Hedge funds shorting AMC stock are also paying a short borrow fee rate for borrowing the stock. Hedge funds have lost billions of dollars year-to-date and continue to lose millions with every passing day they do not close their short positions.
The Fool, MarketWatch, and others protect partners
Not only are The Fool and MarketWatch hedge fund affiliates, but Robinhood, who halted buying both AMC and GME stock early this year are also an affiliate to Citadel Securities.
Citadel Securities is Robinhood’s clearing house. Moral of this story? Ditch Robinhood, and stop sharing and reading shill news articles trying to scare retail investors out of their money.
AMC shares on loan
AMC’s current shares on loan is a staggering 90+ million shares. The shares on loan has been high all year and the media will not tell you this. We found this number by dividing the short interest by the current outstanding shares available.
This is why retail investors have flocked over to AMC in order to squeeze shorts out of their positions. The shares on loan has been increasing since the beginning of the year.
Short sellers keep borrowing stock
As if the evidence couldn’t be more obvious, short sellers continue to overleverage their positions in order to short AMC stock.
Hedge funds have been digging themselves in a deep hole of debt all year. They’ve been leveraging their clients assets in order to drive down the price of a company that is no longer going bankrupt.
And unfortunately for these high ticket investors, the value of their investments will continue to plunge. AMC is a ticking time bomb for a short squeeze that’s been long overdue.
Forbes talks 10/10 AMC short squeeze score
Unlike majority of financial platforms, Forbes hasn’t been blind to all of this information. “Dusaniwsky has developed a Short Squeeze score and ranks AMC ‘s and GameStop’s metric a 10 out of 10 for a short squeeze.”
Forbes gives AMC and GME this 10/10 short squeeze score for the following reasons:
- There is a large amount of dollars at risk on the short side (high short interest)
- A large proportion of a security’s tradable float shorted (high S3 SI % Float)
- There is scarcity of stock loan supply (high stock borrow fees)
- And there is limited daily trading volume (high days to cover)
I want to give a special thanks to Chuck Jones, the senior contributor at Forbes for publishing this piece on AMC Entertainment and GameStop.
What is utilization in stocks?
A stock’s utilization can be seen as the ratio of a stock’s demand to supply.
InteractiveBrokers gives a perfect example of what this means for AMC Entertainment stock. APPL may have utilization of less than 1% because the stock has vast availability relative to the demand to borrow shares for shorting. AMC Entertainment may have utilization above 90% because of higher demand to short shares as compared to the number of available shares.
What is AMC’s current utilization?
AMC’s current utilization according to ORTEX is 91.39%. All data covered by professional and technical analysts shows us AMC is currently the heaviest shorted stock in the market.
AMC stock is in high demand by both retail investors and short sellers. This play will not end until shorts have covered all their positions.
Retail investors are betting on AMC
MarketBeat’s option change for AMC Entertainment stock looks rather healthy. The general public is betting on AMC stock to continue rising. Several call options are opting for $100+ strikes for this Friday’s close.
The sentiment from retail investors has never been more bullish on the stock. Impatient retail investors will not get this chance again as AMC Entertainment preps itself to take flight again.
AMC is running out of sellers
According to Benzinga, “Volume in AMC’s stock has been declining, especially in terms of bearish volume, which indicates the stock is running out of sellers. This pattern is often seen before eventual large upward swings in a stock.”
The patterns and the data available is all you need to build a strong conviction towards AMC stock. The numbers don’t lie and neither do the patterns.
We can hype it up and talk about how much we love this movement but in the end it’s the data we must trust. And for the paper hands that have trolled you online, remember them after the squeeze. Because in life you will come across people who will want to put you down for doing something great with your life.
Hedge funds and their affiliate partners are only blockages you’ll have to learn how to manage. Nothing great ever comes easy so hold and remember your why.
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