AMC Options Volume Has Died
AMC option volume has died off after the recent rally. We noticed two weeks ago that option volume was picking up, and told people to jump in to the shares.
AMC rocketed 40% over the next few days.
Earlier this week, we noticed that option activity was cooling off a bit. Sure enough, the rally ended and AMC is down 12% over the last 3 days.
It’s a similar story today, but with lower volume.
Only $1.2 million in premium has traded in AMC options as of 11:35 eastern this morning. That’s extremely low for a well-known and volatile name like AMC.
My advice is to get out of AMC right now. I think the stock just needs a cool-off a bit before the next rally. It might gradually head lower for a few days as people take profits before consolidating for the next rally.