Why This Former NYSE Trader Bought AMC Call Options: 'If It Gets Going, We Could See A Big Short Squeeze'

Veteran trader David Green was back live trading on Benzinga TV Monday morning, and the long-time trader made some moves.

Green pointed out the volatility of AMC Entertainment AMC. The stock opened slightly lower than Friday’s close, at around $33 per share. AMC shares traded higher throughout the day, reaching $34.75 in the afternoon.

Green purchased both puts and calls on AMC, betting that the stock will move hard in either direction.

“I bought a $60 call expiring August 13 and a $20 put expiring August 13,” Green said. “We’re below our moving averages so $22 on the daily is the next support and $18 on the weekly. I have no technicals on the upside, but if we see the stock moving we could see a big short squeeze.”

Green, an NYSE veteran, often trades stocks on both sides, both long and short. He noted AMC has a history of volatile moves on the upside.

Live Trading With David Green is a morning trading show in which David live trades the open on Benzinga. The show airs Monday-Wednesday at 9:25 a.m. ET on BenzingaTV.

See Also: AMC Earnings Previously Moved The Stock; Can It See Another Push For Monday's Report?

Stocks Discussed On The Show

Green also discussed Roblox RBLX, saying that he liked the $83 level for a spot to make a quick day trade.

American Micro Devices AMD opened up, around $111 a share. The stock quickly dropped down to the $109 level. Green put out an order to purchase shares of AMD at $107.60 while the stock was sliding down. The stock ended up reversing and going back up before Green’s orders were filled.

Robinhood Markets Inc HOOD opened up, near $59 a share. After the open, the stock dropped down near the $56.50 level. Green put an order out to “buy the dip,” if Robinhood dropped below $56 for a quick trade.

Green mostly executes quick day trades, both on the long and short side. When a stock hits one of his pivot points he initiates a buy order with a tight stop loss.

Watch the full episode in the clip below, or click here to watch.

About The Show:

Benzinga’s Wall Street Global Trading Academy follows Wall Street Veteran David Green as he live trades at the market open breaks down what he is trading today. The show streams live Monday-Wednesday at 9:25 am ET on Benzinga's Youtube, Twitter, and Twitch. 

About The Host

David Green is a 30-year veteran of Wall Street, including 13 years as a specialist on the floor of the New York Stock Exchange. Since retiring from the floor, Green spends his time helping retail traders. Green built a full-fledged trading course, Wallstreet Global Trading Academy, with fellow floor trader Peter Tuchman. To learn more about the course, click here or follow it on Facebook.

Photo: Clay Banks on Unsplash