What is the AMC Setup for on Monday

Now you know what happened last week, 27th of May up to the long Memorial Weekend, then continuation on Tuesday and Wednesday.

Remember, for the Hedge Fund Manager volatility is the biggest enemy! But for the day trader it is the biggest friend. So we must trade AMC. But with a concept. No naked positions and we must know what to do when shit hits the fan.

Here we go

Is the Ape Army retreating or are they coming back for more? Where do they want to drive the price? The squeeze hasnt started yet since the Hedge Funds learnt from Game Stop. Just hang in there and it will be over within a week. If the Apes still have money left after the counterattack they might come back for more. They are hungry still. But they have to put so much money on the table that the Hedge Funds will start closing their short positions for a loss. Then the stock will go to the moon! $200!

We will keep an ear on the jungle noise and see Monday morning how the volume will start out. Remember, they surpassed the average volume within 5 minutes of opening. We will see very early and do our position. If they cannot keep up the volume then the steam is out and the whole thing will collapse and my PUTs will take over. Either way, up or down, it will be a winner for us. We just need the right timing and read the volume

What to do on Monday 6-6-2021

Monitor AMC.

a)     BUY 2 x 25^th June 2021 40 PUTs, about $12.25 per contract x 100 shares = $2,450 Debit

i)                   If AMC drops to 30 take profit $10 x 2 x 0.5 DELTA x 100 = $1,000

ii)                 or take profit at 25 for $15 x 2 x 0.5 DELTA x 100 = $1,500

iii)               Collateral 2,450 Dollar

iv)         If the collapses completely it will be even better for us.

b)    If PUT doesnt work (AMC > 60) turning north

i)                   Sell 4 PUTs at 43 to create BULL PUT Credit Spread

ii)                  Probably costs 4 x $6.00 = $2,400 Credit

iii)               This would re-cover the first PUT to 99%.

iv)               2 x -12.25 Debit + 4 x 6.00 Credit = 0.50 => x 100 Shares = $-50

v)                 Collateral 5,550 US Dollar

vi)               This trade will also make us more money if the stock price will further increase.

vii)              Buy 2 CALLs at 60 for about 18.35 a contract

viii)            Sell at 70 for $10 x 2 x 0.5 DELTA x 100 = $1000

ix)               Collateral 1,835 Dollar

x)          If the collapses goes to the moon it will be even better for us.

c)     Totals

i)                   Scenario a) #1 Plus $1,000 or plus $1,550

ii)                 Scenario a) #2 Plus $-50

iii)               Scenario b) Plus $-50 + $1,000 = 950 US Dollars

iv)         Upper side and lower side profit ranges are pretty much open

d)     For this trade you need about $7,500 Dollars

I might change my mind in the last second

Why? Well, the above scenario is relative. It works in the same way for CALLs. If I see the volume rising in the first 5-10 minutes and it hits over 100 million shares AND the price is going up then the Ape Army goes for another fight and I will go long, I will buy two long Calls. If things turn south I will sell 4 short CALLs closer to the money to cover for a profit and buy two long PUTs at the same time. It is pretty much the same set up just the other way around.

Stay focused, no fear, execute the plan