[OLD]AMC - Watching possible wedge breakout on earnings/market buying pressure

I’ve been watching AMC for a few weeks now as it runs through the paces of setting up what could be another substantial run. It’s nearing the end of the wedge it’s been trading in since the famous June 2nd “squeeze”. It’s currently trading more bullish than expected and it’s likely a mix of buying in anticipation of earnings in early November and the market recovery.

This fundamental buying does run the risk of trapping a small amount of shorts in the stock. Now, this isn’t likely a short squeeze scenario, as most things aren’t. But, retail likes to believe that it is and these movements will probably get the hype train moving a bit. Should the stars align, enough sentiment coupled with the organic buying pressure could break AMC out of the wedge to the upside and possibly be the catalyst for a run higher than the previous $70+ dollar peak.

This is early stages and I’ll just be using this thread to brainstorm and track the movements.

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I was actually just talking about playing the bowl forming on the daily.

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Some guy in the disc posted AMC 90c 11/19

45 dollars would yield 270ish

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AMC is currently outside of the wedge as of a candle ago.

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Is there a timeline for the anticipated bull run?

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Would likely be between now and earnings.

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I’ve played into some strikes of my own here based on this information, but I’m curious on how you’re playing it - are you going far OTM for substantial IV gain, type of play?

Did just a few Nov 19 70Cs, but will tend to other strikes after more price movement today

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I personally play soonest expiring and change out strikes often. But that’s not advisable for most traders. I would say expirations for after earnings are the better bets here.

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thanks for the reply and post, its greatly appreciated!

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How are you feeling about this as of today?

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Looking for a pullback to $37.

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When you are playing options here are you going for near the money strikes when it drops around $37 or do you typically play far OTM for around $45 type thing? I am new to options and trying to learn more about not getting my ass handed to me on them so badly.

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i think this depends on your risk tolerance. further out strikes are cheaper and have more risk/reward while closer itm strikes are safer. if youre new, id just starting with a small position and closer itm strikes to avoid loss.

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I’m damned good at losing because I have to get better at taking profits! :rofl:

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Try to find the nearest ATM Call (or put) with the least OI, that’s still affordable to you.

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Why go for the option with the least OI?

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so…that when it increases further…you profit more?

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So this is obviously a stupid question, but how does OI (or lack of) contribute to the price? More demand as price increases?

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that’s actually a wise question. yes, demand is what drives it.
so you want in early, then when you see the OI rise and give you green, you’re happier when you exit–earlier than the others (while they hope for new players to come in and maybe add more to the OI).

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Well I’ll be damned. I’ve been doing it backwards for weeks! I’ve been picking options based on which strike & expiration have the most interest. Not on every single contract but probably 60/40 lol. Thanks for clarifying and nano, thanks for asking!

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