The Investment Thread (18 Viewers)

[St. Geezy]

I am new to the option game, and I have a question that I hope someone could answer. If it is a virtual certainty that AMC is going to squeeze at some point in the next several months, what would be the downfall of shaving off a few shares to instead load up on January 2023 $40 call options, which are currently trading at about $2 a pop?

The maximum downfall of any option is losing the price of the position.

The premise of the play would be that you think there's a reasonable chance that AMC is a >$40 stock in January 2023. It's never been a $40 stock and was hovering around $15 between 2017 and 2019. I don't know AMC's specific fundamentals but I understand the company to have large debt (though good management would be using this gift of short squeeze price action to restructure its debt) and in a sector with huge question marks about American consumer behavior post-pandemic.

Quick update here - I went ahead and made this move, and it has been an absolute game-changer for me. I sold off about 40% of my common stock shares two weeks ago, and put the money into a mixture of June, September, and January $40 calls, and the gains I am seeing are unreal.

My timing could not have been better, because I bought them pretty much near the bottom just before this recent 8 day green streak that has seen the stock price go from sub-$9 to $14+ in the past week.

I will closely monitor them to make sure nothing crazy happens if the price drops, but so far so good. These are seeing increases at a far better rate than the shares themselves, relatively. The June 18th calls are the most worrisome, so I may need to slowly sell those off and move them to September as the date gets closer. But if this thing squeezes in the next week or two, I literally have likely increased my gains by 10x, if not more.

 

[itztime]

Quick update here - I went ahead and made this move, and it has been an absolute game-changer for me. I sold off about 40% of my common stock shares two weeks ago, and put the money into a mixture of June, September, and January $40 calls, and the gains I am seeing are unreal.

My timing could not have been better, because I bought them pretty much near the bottom just before this recent 8 day green streak that has seen the stock price go from sub-$9 to $14+ in the past week.

I will closely monitor them to make sure nothing crazy happens if the price drops, but so far so good. These are seeing increases at a far better rate than the shares themselves, relatively. The June 18th calls are the most worrisome, so I may need to slowly sell those off and move them to September as the date gets closer. But if this thing squeezes in the next week or two, I literally have likely increased my gains by 10x, if not more.

Is that with or without the 100k squeeze

 

[Turfie]

End of day tank across a lot of major indexes.

 

[Turfie]

NSPX was a penny that was mentioned several months ago. Decided to throw some beer money at it at 0.0061. The 1 month RSI is at 22. The lowest since at least 2018. I just hope they don’t do a stock split soon. The company is supposedly real and did file there SEC report on May 17th. Nothing really stuck out in that report.

 

[St. Geezy]

Is that with or without the 100k squeeze

I think the $100k squeeze is a pipe dream that a lot of young investors with 100 or less shares are counting on.

I know all the technical data that's out there and why investors are able to "set the price," however that does not necessarily mean they HAVE to pay those prices either. I think the plug gets pulled well before even $2k, but that's just my opinion. $100k would destroy the world economy...and I mean that literally.

At whatever point I sell, I will likely keep 100 shares or so out there just in case I am wrong, but I think those guys looking for $100k are going to end up being bag-holders in the end.

 

[St. Geezy]

End of day tank across a lot of major indexes.

This is the speculation of what the cause of this was...

 

[St. Geezy]

This is good...

 

[Turfie]

I think the $100k squeeze is a pipe dream that a lot of young investors with 100 or less shares are counting on.

I know all the technical data that's out there and why investors are able to "set the price," however that does not necessarily mean they HAVE to pay those prices either. I think the plug gets pulled well before even $2k, but that's just my opinion. $100k would destroy the world economy...and I mean that literally.

At whatever point I sell, I will likely keep 100 shares or so out there just in case I am wrong, but I think those guys looking for $100k are going to end up being bag-holders in the end.

I’ve seen 100K for AMC and 1 million for GME. Like you said it *could* get that high. But at that point it would just be a relative few.

I don’t know if this happened with AMC (it prolly did), but in the January run up with GME their were shares sold at 2,000+ dollars right before the plug got pulled. That told me that for a few brief minutes the computers were trying to grab every possible available share to cover shorts.

 

[Saint_Ward]

Another more recent update was published overnight. Apparently it does exist. But has direct ties with Citadel. Whole thing is super shady.

Not sure if shady or not, but it's what really rich people do. All kinds of LLC's.

 

[St. Geezy]

Meanwhile, another crypto dump is happening this evening.

 

[Turfie]

Some similarities. How to time a penny stock vs that crypto.

 

[El Caliente]

 

[Saint_Ward]

You do know that's a parody account,.right? Can never be too sure.

 

[El Caliente]

You do know that's a parody account,.right? Can never be too sure.

No way. I get all my best investment advice from Jerome Powell and John W Rich. It’s better to get advice straight from the horse’s mouth than from some poors.