That is because it is. I get the short squeeze and it could go higher, a lot higher. It could go into the thousands. I've owned AMC stock, I've owned calls and right now I have puts. I've won some, lost some, I've been right and I've been wrong. If the stock breaks below $52 then I'll sell the puts on the way down and buy calls or the stock. I've even stated that it's possible a meme stock can turn around a company's fortune because it allows a company like AMC to issue shares on it's insane price and eliminate the debt that was making it such an obvious company to short to begin with. I'll make some and lose some more. It's what happens when swing trading a volatile stock. I lose my arse on GME puts. I also lost my arse on AMC calls because I was careless and purchased the wrong expiration date. I literally played a straddle for GME short and AMC long and screwed up so badly that I bought AMC calls that expired a month earlier than the GME puts and was punished by the stock gods for my mistake.
Again, I completely agree that $52 is going to be battle ground. I don't disagree with it bouncing off of $52 and running to $120. It can also just as easily break below $52 and run down to $40. I'm watching this battle if I feel like $52 holds then I'll buy calls and be in a straddle again.
The timing of bitcoin fall correlates really well with market expectations of the Fed ending easing policies, same with gold. Will likely be a really bad few months for crypto and gold. Add in the pressure from China and it's an ugly place to be. Also could present a really good buying opportunity when the bottom starts to round. I actually think it's a good sign for the long term health of crypto, it's showing a long term fundamental pattern, something it has lacked and kept me from investing. I'm not buying the bubble bursting being advertised by many for Bitcoin, Doge is another story.
Probably going to see another test but I picked up some AMC calls when $52 held. Now I'm straddled with $57 puts and $53 calls. Movement any direction I make money, more movement, the more money and I don't care which way she rolls but I'm rooting against sideways. lol
That’s one of the tin foil theories on why a few stocks just drifted sideways in April into mid May. They called it the Max Pain theory for hedges.
Sideways I still make money but it'll be single digit percent gains. If AMC can breaks above $62 or below $52 then it would pay big. I don't buy that max pain theory. Looks a lot more like a sideways consolidation pattern. I doubt we go there right now, the stock is at a really volatile point. This is the first time in months I've been home to swing trade. I got bored with trading but after the break I really missed it.
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