AMC Leaps Ahead of Tesla, Nvidia in Stock Options Volume Amid Meme Frenzy
(Updated at 3:43 p.m. in New York )
The meme frenzy is back, pole-vaulting $AMC Entertainment(AMC.US$ to the top spot for the highest stock options volume, ahead of $Tesla(TSLA.US$ and $NVIDIA(NVDA.US$, which typically alternate in occupying that slot.
With less than half an hour left in the trading day, AMC stock options volume soared to more than 1.6 million contracts, as AMC shares climbed 83%, joining the surge among meme stocks after Keith Gill, known as "Roaring Kitty," returned to social platform X for the first time in three years. "Roaring Kitty" posted an image of a man leaning forward in his chair, a meme popular among gamers that signals things are starting to get serious, according to Reuters.
The meme frenzy is back, pole-vaulting $AMC Entertainment(AMC.US$ to the top spot for the highest stock options volume, ahead of $Tesla(TSLA.US$ and $NVIDIA(NVDA.US$, which typically alternate in occupying that slot.
With less than half an hour left in the trading day, AMC stock options volume soared to more than 1.6 million contracts, as AMC shares climbed 83%, joining the surge among meme stocks after Keith Gill, known as "Roaring Kitty," returned to social platform X for the first time in three years. "Roaring Kitty" posted an image of a man leaning forward in his chair, a meme popular among gamers that signals things are starting to get serious, according to Reuters.
The rally in AMC shares reversed a downtrend that culminated with the operator of movie theaters last week reporting a worse-than-expected adjusted loss of 78 cents per shares for the first quarter ended March 31. That prompted Wedbush to cut its price target on the stock to $3.50, from $4 last week, while maintaining a neutral rating on AMC.
The stock's rally Monday trimmed this year's decline to about 14%. That compares with a 9.5% advance for the $S&P 500 Index(.SPX.US$.
Today's surge put the call options that give the holders the right to buy the stock at $4 by the end of this week in-the-money as the stock surges above that strike price. About 145,720 of those calls have changed hands as of 3:38 p.m. in New York, making them the most heavily traded AMC options Monday. The price of the calls climbed 20-fold to $1.21 per share.
Today's surge put the call options that give the holders the right to buy the stock at $4 by the end of this week in-the-money as the stock surges above that strike price. About 145,720 of those calls have changed hands as of 3:38 p.m. in New York, making them the most heavily traded AMC options Monday. The price of the calls climbed 20-fold to $1.21 per share.
Even financial giants are joining in on the action. At 9:41:40a.m. in New York Monday, a block trade for $7 call options were posted. The buyer paid a premium of $105,720 for 1,7600 contracts that give the holder the right to buy 176,000 AMC shares at that strike price by Sept. 20. That's the biggest block trade for AMC options posted so far Monday.
The price of those calls that expire in more than four months climbed 433% to $1.44, making the trade already profitable for the buyer who paid 60 cents a share for that block trade.
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Former editor at Bloomberg, then Lazard Asset Management. Posts aren’t investment advice. Views are just mine.
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