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AMC Options Traders Aren't Discouraged, Repeatedly Hammer Calls

Benzinga2021-07-03

On Friday morning, Iceberg Researchannouncedit had taken a short position inAMC Entertainment HoldingsAMC 4.08%. Iceberg said options traders have lost money due to the stock trading sideways for the month of June and that the pump around the stock looks shaky.

The news didn’t stop institutions from continuously hammering AMC call contracts and on Friday options traders had purchased over $2.59 million worth. The expiration dates for the contracts ranged from today up until Dec. 17 and a few traders chose a strike price of a whopping $145.

AMC’s stock broke bearishly from a symmetrical triangle it had formed through its sideways trading on Friday, but held a support level at $47.91 and bounced from it. Bulls would like to see the dip continue to be bought and for AMC to end the day by printing a hammer candlestick and closing above the 21-day exponential moving average.

Why It’s Important:When a sweep order occurs, it indicates the trader wanted to get into a position quickly and is anticipating an imminent large move in stock price. A sweeper pays market price for the call or put option instead of placing a bid, which sweeps the order book of multiple exchanges to fill the order immediately.

These types of call option orders are usually made by institutions, and retail investors can find watching for sweepers useful because it indicates “smart money” has entered into a position.

The AMC Option Trades:Below is a look at the notable options alerts, courtesy ofBenzinga Pro:

  • At 9:42 a.m., Friday a trader executed a call sweep near the bid of 265 AMC Entertainment options with a strike price of $59 expiring on July 9. The trade represented a $52,205 bullish bet for which the trader paid $1.97 per option contract.
  • At 9:51 a.m., a trader executed a call sweep near the bid of 247 AMC Entertainment options with a strike price of $65 expiring on Aug. 20. The trade represented a $221,065 bullish bet for which the trader paid $8.95 per option contract.
  • At 9:52 a.m., a trader executed a call sweep near the bid of 248 AMC Entertainment options with a strike price of $120 expiring on Dec. 17. The trade represented a $260,400 bullish bet for which the trader paid $10.50 per option contract.
  • At 9:53 a.m., a trader executed a call sweep near the bid of 356 AMC Entertainment options with a strike price of $65 expiring on Aug. 20. The trade represented a $311,500 bullish bet for which the trader paid $8.75 per option contract.
  • At 9:53 a.m., a trader executed a call sweep near the bid of 310 AMC Entertainment options with a strike price of $65 expiring on Aug. 20. The trade represented a $266,600 bullish bet for which the trader paid $8.60 per option contract.
  • At 9:56 a.m., a trader executed a call sweep near the bid of 310 AMC Entertainment options with a strike price of $65 expiring on Aug. 20. The trade represented a $266,600 bullish bet for which the trader paid $8.60 per option contract.
  • At 9:57 a.m., a trader executed a call sweep near the bid of 300 AMC Entertainment options with a strike price of $28 expiring on July 2. The trade represented a $221,065 bullish bet for which the trader paid $23.40 per option contract.
  • At 9:58 a.m., a trader executed a call sweep near the bid of 289 AMC Entertainment options with a strike price of $120 expiring on Dec., 17. The trade represented a $303,450 bullish bet for which the trader paid $10.50 per option contract.
  • At 9:58 a.m., a trader executed a call sweep near the bid of 580 AMC Entertainment options with a strike price of $55 expiring on July 16. The trade represented a $278,400 bullish bet for which the trader paid $4.80 per option contract.
  • At 10:07 a.m., a trader executed a call sweep near the bid of 258 AMC Entertainment options with a strike price of $80 expiring on July 16. The trade represented a $39,216 bullish bet for which the trader paid $1.52 per option contract.
  • At 10:24 a.m., a trader executed a call sweep near the bid of 352 AMC Entertainment options with a strike price of $50 expiring on July 2. The trade represented a $54,560 bullish bet for which the trader paid $1.55 per option contract.
  • At 10:26 a.m., a trader executed a call sweep near the bid of 234 AMC Entertainment options with a strike price of $145 expiring on July 23. The trade represented a $39,216 bullish bet for which the trader paid $1.31 per option contract.
  • At 10:31 a.m., a trader executed a call sweep near the bid of 224 AMC Entertainment options with a strike price of $145 expiring on Sept. 17. The trade represented a $105,280 bullish bet for which the trader paid $4.70 per option contract.
  • At 10:38 a.m., a trader executed a call sweep near the bid of 500 AMC Entertainment options with a strike price of $47 expiring on July 2. The trade represented a $146,000 bullish bet for which the trader paid $2.92 per option contract.
  • At 12:02 p.m., a trader executed a call sweep near the bid of 500 AMC Entertainment options with a strike price of $45 expiring on July 9. The trade represented a $305,000 bullish bet for which the trader paid $6.10 per option contract.

AMC Price Action:Shares of AMC Entertainment were trading down 5.3% to $51.33 at publication time.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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  • stbt
    ·2021-07-06
    Good
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  • LowZackM
    ·2021-07-06
    Keep pushing on apeapes
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  • Skai
    ·2021-07-05
    $AMC Entertainment(AMC)$ will start squeezing any time. Just a friendly reminder for all the short sellers.
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    • cKsoh
      ?
      2021-07-05
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  • SSVC
    ·2021-07-05
    Yeah Appreciate your comments and response Thanks 
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    • YiiYii
      Alright [微笑]
      2021-07-05
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  • RuniMan
    ·2021-07-05
    Wait to up again 
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  • stormlee
    ·2021-07-05
    Comment & like pls
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    • stormlee
      ?
      2021-07-05
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    • BigMac8885
      Pls help too
      2021-07-05
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  • bostonxsgp
    ·2021-07-05
    yea
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    • stormlee
      Comment & like pls
      2021-07-05
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  • LLYeoh
    ·2021-07-05
    Like it
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    • stormlee
      Comment & like pls
      2021-07-05
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  • roushiro
    ·2021-07-05
    Cool
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    • Khoo12
      Hmm[Smile]
      2021-07-05
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  • whyisofat
    ·2021-07-04
    Jiayou much!!
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    • Visionz
      lol
      2021-07-05
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  • masran
    ·2021-07-04
    good to go!!!!
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  • masran
    ·2021-07-04
    all the way up
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  • JFK23
    ·2021-07-04
    Take profit
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    • Toastz
      Nice
      2021-07-05
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  • Aliff
    ·2021-07-04
    Good
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  • MonaMaMa
    ·2021-07-04
    Very strange report Bullish sweeper call and yet strike at $45 & $47 etc....
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  • HH13
    ·2021-07-04
    Pls like & comment
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    • EsmeT
      ??
      2021-07-04
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    • HH13
      Like
      2021-07-04
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  • Linh2
    ·2021-07-04
    Ok 
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  • jaz09
    ·2021-07-04
    Nice
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  • Geminifx
    ·2021-07-04
    Ok
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  • dho
    ·2021-07-04
    Xmas presents for all!!!! 
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