5 Comments

Because you could lend out AMC to receive gargantuan lending fees most of that period of high price, you could look at AMC as a low value stock with a huge coupon of indeterminate duration attached. Once the coupon expired (ie borrow cost went back to normal-ish) the underlying (lack of) value was all that remained.

Expand full comment

The go-to trade on the meme stocks IME is the long-dated put spread. If it keeps memeing the short leg can close out and you end up with a long put the whole time that pays off if it stops memeing.

I had BBBY and AMC put spreads last year where I closed out both legs at a profit.

Expand full comment

You have to factor the current market environment into your "markets are broken" come-to-Jesus moment. Everything speculative (aside from your monster NVDA position) is getting crushed.

Expand full comment

If you’ve sent any time talking with AMC “apes” or listening to their chat rooms, you would not be the slightest bit surprised.

Markets - and mass psychology - are working exactly as expected during, and at, this stage of a top in generational speculative mania.

Expand full comment

Apes and others looking for a squeeze are taking tax losses . Also, looks like T Swift may not be the needle mover. Don’t forget the strike so product is going to be very light.

Expand full comment