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AMC started fighting slowly on Monday for NYSE:AMC by Andrew_Lander

With a predicted closing of around 37-38 on Friday AMC shares rose higher on Call option buying today. The Put Call ratio is 0.44, which means for every existing Call option there are about 0.44 Puts options out there. The majority of people believe that this bankrupt company will rise from the ashes and go to the Moon!

The general trading volume was about 98 million shares or 50% of the average. Not like last Wednesday and Thursday when it surpassed the average volume . Tuesday and Wednesdays are the most important days for option traders since the market makers will follow or give you the price direction.

All over all there exist a Call Option resistance level at $40 with 2.65 million shares. The next level up is sitting at $45 with about 1.30 million shares and the next one up is at $50 with 1,3 million shares

And there is a Put Option support level at $35 with 1.45 million shares.

We can see that the option volume is pretty low. It tended to be 10 fold. If we assume that there will be two busy days for AMC , can the Ape Army buy another 400,000 call contracts? they would need to come up with about 120 million Dollar, expiration 4 days, and willing to lose it all.

Will they go to the moon, bro?

We can see another AMC trend. Over 95% off all option buys are expiring end of THIS week. They are cheap and they are a gamble. Money down the drain. Option contracts for next week and beyond are sparsely seeded.

What is the Market Maker Sweet Spot for this week so far?

The sweet spot is under $40 and above $36. My bet is that this will be the price range for this week if the Ape Army cannot come up with 120 million Dollar for more lottery tickets.

And when all options expire on Friday, 50,000 Put options with a value of about 50 million Dollar and 121,000 Call Options with a value of about 83 million Dollars, the market maker will have more long shares and might sell them. But this might happen only if there is a two week of calm sea ahead. MM are NOT shareholders or traders, they make the market and provide liquidity! So dont kid yourself.

With a stock price at 43 the payout for the Market Maker would be around 28 million Dollars for Call Options and $600,000 for Put Options. If they can keep the price at 40-38 the payout for both, put and call options, would be around 8.5 million Dollars only. Dont forget that the market maker are sitting on sheet loads of shares due to the mistake the ape army is doing. Their attacks only go from Monday to Friday. And every Friday the Ape Army, except a few that came in early, loses big time, big money. Bring me your pay check bro.

Lets see what will happen, this is just the Monday. The week is still ahead and it is Earning Report season.

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