2021 brought one of the most interesting changes in financial markets, as the retail trader learned the power of the options market. The derivatives market is made out of futures, forwards, options, and swaps, with options giving traders the right but not the obligation to exercise the option at expiration.
The AMC stock price benefited the most from the rise of the meme stocks. These stocks, like GME, CLOV, or AMC, are known as being the most heavily shorted stocks by hedge funds in the industry. For instance, the AMC stock price had a hard time bouncing from its lows with a short interest percentage of total shares of 20.4%.
The squeeze that followed in the meme stocks triggered massive losses for hedge funds, but it doesn’t mean that it generated gains for retail traders. Trading options is complicated, and options strategies are often viewed as being complex enough for the professional investing community, not to mention of the retail trader.
AMC Technical Analysis
In any case, the technical picture looks bullish while the price remains above $40. It suggests a triangle as a continuation pattern may be in the cards, maybe even a pennant formation. That being said, bulls may want to stay on the long side targeting $100 with a stop at $40.
AMC Stock Price Forecast
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