More puts coming through on AMC

AMC’s rally is taking a break today after spiking this morning. I’m seeing a lot more put orders coming through compared to the last two days, which is signaling that the tide is shifting on AMC.

Call volume is still higher than put volume, but you have to keep in mind that calls will likely still be traded more frequently than puts even if AMC continues to slide. This is because many more call positions were opened over the last few days, so traders will scramble to exit those positions.

Here’s AMC’s option volumes as of 11:51am eastern, courtesy of Vigtec

The other clue that AMC is taking a break and that many of the call trades are actually people unwinding positions is that the implied volatility (IV) levels are decreasing. Yesterday, at-the-money calls were around 350% IV, but have now dropped to below 300%.