AMC Apes Hold Strong As Options Traders Slap The Ask

On Monday, AMC Entertainment Holdings, Inc AMC broke bearish from a triangle the stock had set up and on Tuesday continued to fall lower.

The stock has entered into a demand zone, however, where traders and investors have typically purchased shares. When AMC traded near the $32 mark on July 15 and July 19, bulls came in and bought the stock and it traded higher over the days that followed. Bulls will want AMC to hold above the level to feel confident going forward.

For now, AMC apes are holding strong and as of Monday night, the theatre chain was still a top trending stock in the r/WallStreetBets community. Institutions also continue to hammer AMC call contracts and on Tuesday purchased over $3.32 million worth. One institution paid a whopping $2.6 million for 6000 AMC calls with a strike price of $34 that will expire on Aug. 20. The institution must not be worried AMC’s stock will sell off following its earnings print set for Aug. 9

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Why It’s Important: When a sweep order occurs, it indicates the trader wanted to get into a position quickly and is anticipating an imminent large move in stock price. A sweeper pays market price for the call or put option instead of placing a bid, which sweeps the order book of multiple exchanges to fill the order immediately.

These types of option orders are usually made by institutions, and retail investors can find watching for sweepers useful because it indicates “smart money” has entered into a position.

See also: How to Buy AMC Stock

The AMC Trades: Below is a look at the notable options alerts, courtesy of Benzinga Pro:

• At 9:33 a.m., a trader executed a call sweep near the midpoint of 551 AMC Entertainment options with a strike price of $60 expiring on Sept. 17. The trade represented a $110,200 bullish bet for which the trader paid $2 per option contract.
• At 9:33 a.m., a trader executed a call sweep above ask of 687 AMC Entertainment options with a strike price of $40 expiring on Aug. 6. The trade represented a $36,411 bullish bet for which the trader paid 53 cents per option contract.
• At 9:35 a.m., a trader executed a call sweep near the ask of 200 AMC Entertainment options with a strike price of $145 expiring on Jan. 21, 2022. The trade represented a $47,800 bullish bet for which the trader paid $2.39 per option contract.
• At 9:37 a.m., a trader executed a call sweep near the ask of 274 AMC Entertainment options with a strike price of $37 expiring on Aug. 6. The trade represented a $26,578 bullish bet for which the trader paid 97 cents per option contract.
• At 9:37 a.m., a trader executed a call sweep near the ask of 728 AMC Entertainment options with a strike price of $37 expiring on Aug. 6. The trade represented a $72,072 bullish bet for which the trader paid 99 cents per option contract.
• At 9:38 a.m., a trader executed a call sweep near the midpoint of 808 AMC Entertainment options with a strike price of $40 expiring on Aug. 20. The trade represented a $47,800 bullish bet for which the trader paid $2.44 per option contract.
• At 9:39 a.m., a trader executed a call sweep near the midpoint of 220 AMC Entertainment options with a strike price of $37 expiring on Aug. 20. The trade represented a $81,400 bullish bet for which the trader paid $3.70 per option contract.
• At 9:45 a.m., a trader executed a call sweep near the midpoint of 316 AMC Entertainment options with a strike price of $37 expiring on Aug. 6. The trade represented a $29,388 bullish bet for which the trader paid 93 cents per option contract.
• At 9:45 a.m., a trader executed a call sweep near the midpoint of 326 AMC Entertainment options with a strike price of $37 expiring on Aug. 6. The trade represented a $29,992 bullish bet for which the trader paid 92 cents per option contract.
• At 10:24 a.m., a trader executed a call sweep near the midpoint of 6000 AMC Entertainment options with a strike price of $34 expiring on Aug. 20. The trade represented a $2.6 million bullish bet for which the trader paid $4.35 per option contract.
• At 10:25 a.m., a trader executed a call sweep near the midpoint of 471 AMC Entertainment options with a strike price of $34 expiring on Aug. 13. The trade represented a $162,495 bullish bet for which the trader paid $3.45 per option contract.
• At 11:29 a.m., a trader executed a call sweep near the ask of 350 AMC Entertainment options with a strike price of $145 expiring on Jan. 21, 2022. The trade represented a $84,000 bullish bet for which the trader paid $2.40 per option contract.

AMC Price Action: AMC Entertainment was trading down 5.1% to $33.39 at publication time.