The most important roundup of news for AMC July 5 2021
- Here’s a pre-Tuesday message to hedgies from Charles Payne. LFG, apes!
- At the current price of $52.90 at which AMC closed the AH session of Friday, approximately 449,613 put options expire OTM in 11 days, so hedge fund managers, day traders, and retail shorts are shitting bricks. You know . . . because they’re constipated. Imagine if AMC is at $60.00+ in 11 days. Apes smash!
- Here’s a research template to expose naked shorts in AMC! This is huge!
- The German market closed at $53.22 today, which is 2.43% above the regular session closing price of $51.96 in the U.S. market on Friday!
- Adam Aron, if you give movie tickets to investors as “special dividends,” shorts will be forced to buy those movie tickets from your theaters to provide/cover all synthetic shares. Of course, this plan is contingent upon whether or not AMC is eligible—according to SEC rules—to pay a dividend due to its existing debt obligations.
- After digging even deeper, I’ve discovered that in order to be removed from the threshold list, AMC must not exceed the specified number of fails for 5 (five) consecutive trading days (see Footnote #87). So, the escape route for hedge funds just got more complicated/difficult. In other words, they can’t just pull some bullshit for 1 day to make their looming problem go away. The SEC enacted the 5-day entry/exit requirement in order to prevent obvious fuckery on either end.
In order to be deemed a threshold security, and thus subject to the restrictions of Rule 203(b)(3), a security must exceed the specified fail level for a period of five consecutive settlement days. Similarly, in order to be removed from the list of threshold securities, a security must not exceed the specified level of fails for a period of five consecutive settlement days.
UPDATE: Reddit user u/nothingbutgolf sent me the following message explaining how the exit process works. I’ve asked him to provide a corroborating source.
The 5 days to get off the threshold list works like this:
You can’t ADD any more FTDs after closing out the positions that put you on the list. Basically to get off the list, you have to close out ALL FTDs, and then have no new FTDs above the threshold for 5 consecutive days.
So, if “they” close out enough FTDs, they can, in effect, start a timer of 5 days to have no more FTDs over the threshold, if they do, new 5-day timer starts. That’s how companies wind up on the list for weeks or months.
Information provided by u/AgedMurcury78 in his amazing Ultimate AMC Timeline document.