High Probability Trading (Ratio Spreads) In AMC Entertainment Stock

Individual Trader
17.84K Followers

Summary

  • AMC Entertainment Holdings, Inc. stock has a very high implied volatility in the March cycle.
  • Although AMC Entertainment Holdings, Inc. shares remain in a bear market, the short-term trend has been encouraging, with earnings projections improving.
  • We do not see a violent contraction in AMC shares over the near term. This sets up a position to give us a cost basis of $2.26 per share of AMC.

AMC Theatres Reopens Its Doors By Celebrating 100 Years Of Operations With "Movies In 2020 At 1920 Prices"

Tom Cooper

Intro

Many traders continue to short AMC Entertainment Holdings, Inc. (NYSE:AMC) due to the sustained pattern of lower highs on the technical chart. Over the past three months (which was an encouraging period for the sector and equity

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This article was written by

17.84K Followers
Individual investor with a keen interest in deriving income from investment setups. We do this by buying undervalued profitable stocks with strong balance sheets & minimal debt. Furthermore, when the opportunity arises, we like to write calls against our positions to bring in additional income. Risk management is controlled through position sizing & the use of trailing stop losses over time.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of AMC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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