AMC Options Traders Position For Deeper Declines Post Share Offering Agreement
Portfolio Pulse from Lisa Levin
AMC Entertainment Holdings, Inc. (NYSE:AMC) shares fell sharply after the company entered an equity distribution agreement for up to 40 million shares. The company has partnered with Citigroup, Barclays, Riley Securities, and Goldman Sachs to act as sales agents. Options traders are positioning for further declines, with more puts than calls on AMC during Wednesday's session.
September 07, 2023 | 12:47 pm
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AMC's stock price fell sharply following the announcement of an equity distribution agreement. Options traders are predicting further declines.
The announcement of AMC's equity distribution agreement has led to a sharp drop in the company's stock price. This is likely due to the dilution of shares, which reduces the value of existing shares. Furthermore, the fact that options traders are buying more puts than calls indicates a bearish sentiment, suggesting that the stock price may continue to fall in the short term.
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