RocketMan
2021-06-24

$AMC Entertainment(AMC)$

If you keep a close eye on AMC in Ortex, they are showing millions of shorts covering and millions of new shorts entering the market. This is likely a HF tactic... If you cover a short at price $X and immediately short it at the same price $X, the effect is net neutral on the stock... even though it cost the HF a bunch of money to cover from their previous underwater short. BUT... to you the average investor, it looks like nothing is happening and they want you to sell, thinking nothing is happening.

Another note to this.

Debt is different than how much underwater you are in a position. Margin calls are about how much underwater in a position you are, not how much total debt you have incurred. This is transitioning your loss from a unrealized to realized loss... So, are HFs losing millions doing this? Yes. Are they going to get margin called tomorrow? Likely not. Could they get margin called in the future when their positions are underwater again due to the price going up? Yes... So this is why it is so important to be patient on this effort... they are using tactics like this to prolong the inevitable.

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精彩评论

  • Daveb
    2021-07-08
    Daveb
    This is the Way 💎💎💎✊🏿✊🏿💥🚀
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