On Friday, Benzinga reported that another short tightening may be in the works after options traders continued to hammer bullish AMC call contracts. On Monday, AMC struggled to regain support from the 21-day exponential moving average on the daily chart and head north to a resistance level above $39. TL;DR I would now start loading stocks + calls, it seems that many GME gains are flooded in AMC and BB and NOK and the three tickers could have a short pressure on Monday An extraordinarily large volume (compared to historical averages) is an indication of unusual activity in the options market. Volume refers to the total number of contracts traded over a given period of time as part of the discussion on options market activity. Open interest is the number of unsettled contracts that have been negotiated but not yet concluded by one of the counterparties. In other words, open interest represents the amount of contracts that the individual parties have concluded, but for which they have not yet found consideration (i.e. . B a buyer who finds a seller or a seller who finds a buyer). Although the stock is already smoking short sellers a few times this year, bearish institutions continue to pile up in AMC.
Of the 511.4 million shares held by AMC, the number of shares held short rose to 85.85 million in July, up from 75.48 the previous month. When all the calls that close ITM this Friday from Bell expire, there will be a short pressure on Monday morning contracts that are “out of the money” are also an indication of unusual option activity. “Out of money” contracts occur when the underlying price is lower than the exercise price of a call option or higher than the exercise price of a put option. These transactions are made in the hope that the value of the underlying asset will change dramatically in the future and that buyers and sellers will benefit from a larger profit margin. © Benzinga.com. 2021 Benzinga does not offer investment advice. All rights reserved. Short sellers could get into trouble if bears continue to win the battle and bullish options traders continue to buy call contracts on Monday. Together, merchants purchased more than $1.9 million in calls, with one merchant spending more than $500,000 on a single order. Although the activity points to these strategies, these observations are made without knowing the true intentions of the investor when buying these option contracts.
An observer cannot be sure if the bettor is playing the contract directly or if he is covering a significant underlying position in a common stock. In the latter case, the exposure of a large investor in its short position on common shares may be more significant than the bullish option activity. Options are “bullish” when a call is sold at/near the asking price or a put at/near the spot price. Options are “bearish” when a call is sold at/near the bid price or a put is bought at/near the ask price. Another indicator of unusual options activity is trading a contract with an expiration date in the distant future. An additional period of time until the expiry of a contract generally increases the possibility for it to increase its time value and reach its strike price. It is important to consider fair value because it represents the difference between the strike price and the value of the underlying asset. Make a list of investments you want to track. Basically, what happened to GME last Monday For the selected expiration date of the options, the information listed at the top of the page includes: Visit a landing page and your most recently viewed tickers will be displayed here. . The bar chart allows you to display options by expiration date (select the month/year of expiration from the drop-down menu at the top of the page).
Weekly expiration dates are marked with a (w) in the list of expiration dates. Is AMC Entertainment Stock about to smoke shorts again? Option information is delayed by at least 15 minutes and is updated at least once every 15 minutes throughout the day. Registered cashchart members can set a preference for viewing this page. At 10:18 a.m.m .m a trader performed an on-demand call scan of 205 AMC Entertainment options with an exercise price of $31, which expires on August 20. Trading represented a bullish bet of $66,420, for which the trader paid $3.24 per options contract. You can also view the options in a stacked or side-by-side view. The View setting determines how puts and calls are listed on the page. For both views, calls and “close to money” puts are highlighted: Dogecoin digs into a bullish model: How to play The Break Volume sums reflect the options traded during the current session. . For more information on option warnings, check out pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts AMC Price Action: AMC Entertainment rose 5.5% to $35.32 at the time of release. The AMC Trades: Here`s an overview of notable option warnings, courtesy of Benzinga Pro: These types of option orders are usually made by institutions, and retail investors may find it useful to look at the sweepers as it suggests that “smart money” has taken a stand. .
Unusual options activities are an advantageous strategy that can greatly reward an investor if they are highly qualified, but for the less experienced trader, it should remain another tool to make an informed investment decision while taking into account other observations. .