AMC Options Traders Position For Deeper Declines Post Share Offering Agreement

AMC Entertainment Holdings, Inc. AMC shares fell sharply on Wednesday after the company entered an equity distribution agreement for up to 40 million shares at an at-the-market program.

On CNBC’s "Options Action,"  Kevin Kelly of Kelly Intelligence said there were 1.43 times more puts than calls on AMC during Wednesday’s session.

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There were buyers of 62,266 of the September 8 weekly 10-puts at an average price of $1.55 per contract, Kelly said.

Trader sees AMC’s stock trading lower through Friday’s close.

In a new regulatory filing, AMC said it entered into an agreement with Citigroup, Barclays, Riley Securities and Goldman Sachs to act as sales agents to sell up to 40 million shares of common stock from time to time in an offering program.

Price Action: AMC Entertainment shares dipped 36.8% to close at $8.62 on Wednesday, and were trading over 3% lower during Thursday's premarket trading session.

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