Thursday, March 23, 2023

Latest Posts

AMC Entertainment Stock News and Forecast: Is Cineworld making AMC $13 puts lucky? – FXStreet

- Advertisement -
- Advertisement -

Ivan Brian Ivan Brian

AMC Entertainment (AMC) stock fell sharply on Wednesday as meme stocks finally looked to be rolling over after some huge gains over the past two weeks. Poster child Bed Bath & Beyond (BBBY) did close 12% higher, but this was a much lower close than the premarket levels. This is one of our classic "tells".
AMC stock will not have been helped by news of competitor cinema operator Cineworld (CINE) in so called rescue talks. CINE stock fell 60% on Wednesday although it has been recovering somewhat in Thursday's premarket. 
Cineworld's released the following statement to the London Stock Exchange on Wednesday: "Despite a gradual recovery of demand since re-opening in April 2021, recent admission levels have been below expectations. These lower levels of admissions are due to a limited film slate that is anticipated to continue until November 2022 and are expected to negatively impact trading and the Group's liquidity position in the near term… the Group remains in active discussions with various stakeholders and is evaluating various strategic options to both obtain additional liquidity and potentially restructure its balance sheet through a comprehensive deleveraging transaction. Any deleveraging transaction will likely result in very significant dilution of existing equity interests in Cineworld."
One does wonder how they managed it so badly when AMC has been shouting from the rooftops about surging demand. Cineworld is the second largest cinema operator in the US behind AMC. AMC did manage to perform some badly needed capital raises to keep afloat during peak meme stock madness, so it is in a better position. This does highlight our continued concerns over AMC however. Namely, it still has piles of debt and deferred leases. Recent so-called bonus preferred units have helped buoy investor sentiment among AMC Apes, but we still feel the worst is yet to come for AMC stock. We feel something dilutive has to happen.
The recent move has already been slowing, and this adds to the bearishness. AMC will target key support at $21.04, and it is likely to break that shortly. A break would then target support at the $13 to $14 zone. $27 is the level that would turn us into AMC bulls based on short-term momentum.
Recent meme stock momentum appears to be slowing, and we expect more of the same. Volatility has elevated, meaning selling out-of-the-money calls can be profitable, but this is a high-risk strategy. Buying lucky $13 puts for September 2 should cost around $0.23 per share ($23 per 100-share options contract). 

AMC stock chart, daily

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
GBP/USD is off the lows but remains vulnerable amid mixed UK Retail Sales and broad USD strength. The UK Retail Sales surprised positively, with a 0.3% rise MoM in July. On an annualized basis, UK consumer spending fell 3.4% vs. 3.3% expected. 
EUR/USD holds lower ground near the monthly bottom, approaching 1.0050 as the US dollar trades firmer amid a sluggish European morning. Fears of German recession, geopolitical concerns and hawkish Fedspeak weigh on the major currency pair.
Gold price takes offers to renew monthly low near $1,750 during early Friday morning in Europe. The bullion prices register the five-day downtrend as the US dollar bulls cheer recession woes, as well as firmer US data and hopes of the Fed’s aggression vis-à-vis rate hikes.
AVAX price is in a tough spot as it approaches the end of its uptrend that has been ongoing for two months. While bearish as the altcoin looks, a minor relief rally or bounce could help investors cash out before another leg down. 
Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.


- Advertisement -

Latest Posts

Don't Miss

Stay in touch

To be updated with all the latest news, offers and special announcements.