The trading volume for AMC is not that strong anymore. The apes seem to wander off to another banana tree. Tomorrow might be the critical day. If they cant breach the 60 and 70 level by Thursday there will be just not enough money to keep the pressure up. You cannot buy CALL options in a stock and then close them for a massive loss. Remember the MM is sitting on all the shares even when your CALL option expires. They still have the massive amount of shares and they haven't tossed them into the market yet. The price hasnt dropped yet. They are hesitant and wait.
The price couldn't breach the 70 Dollar level since 3 weeks. Since a week the price ranges from $52 to $65. That will drive the apes mad since they have no patience. They will wander off to other MEME stocks because they have better looking bananas.
The CALL options in play are are much broader spread than last week. The red circle shows options that might be Out of the Money, OTM, by the end of the week. All those calls expire! Look at DTE, Days to Expiration, 2.
These are the numbers and we can see compared to last week that the apes REALLY expected to drive the price way up. And they did not succeed! Compared to last week we have a lot of CALL options that are way beyond the 60 Dollar level: 80, 90, 95. Lot of bedding.
This is how it will look like if AMC ends at 65 on Friday.
The losses could be big for the MM (250 million Dollar) but they are sitting on a huge amount of shares by now. And who knows. They might start selling shares for every call that comes in too. Buy a 100 for every contract to cover the CALL and then sell a 100 to drop the price. I am not an Oracle. But we can assume that 6 million Dollar wander out of the wallets of the apes into the wallets of the MM. These are the options that will expire worthless, OTM, Out of The Money.
And if the Market Maker can keep the price between 55 and 51 Dollar they win the game this week. They will end up in the profit.
Last Friday the drop didnt happen. I closed my put at the end of the day for no loss. I bought another PUT today to stay on the other side of the movement.
I am waiting for the drop. If it happens to be an up rise I will sell two Puts against the long Put Option and break even. Then buy a Call Option to participate in the "To the moon, bro!" travel.
Either way it should be fun.
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