The most important roundup of news for AMC May 25 2021
- Ortex states that 94.58 million shorted AMC shares were reported to FINRA on May 14.
- Congratulations, we’ve finally broken through the sell walls at $14.50 and crossed $15.00! Isn’t it amazing what losing the world’s biggest paper-handed bitch (Wanda) can do? I’ve been saying that for months! See, it’s true!
- PPS hit $16.67! Apes have them by the throats. Now, step down hard and twist by slappin’ that ask!
- Here come the whales! AMC shares are the plankton.
- Anybody have a penny? I want to buy a share of AMC. . . . Oh, wait, I’m not a delusional shill like Rich “Triple Neck” Greenfield.
- Ape pledges to “run down the street twerking with ‘AMC’ on his or her cheeks and a banana in his or her asscrack.” Hot chick or fat hick? Film at 11:00. Back to you, Dan!
- Volume for the regular session finished at 202,495,677!
- PPS crosses $17.20 in after hours! The numbers suggest that AMC will easily open over $17.50 tomorrow. I’m buying 1,000 more shares right now in AH.
- Fox News drools all over AMC.
- Hmmm, I wonder why there was no AMC-bashing article from Motley Fool today.
- Citigroup puts out a completely bogus, utterly nonsensical price target for AMC. I won’t even dignify it with a link.
- Hedge funds lost $754,000,000 today alone!
- It appears that Interactive Brokers (IBKR) is now warning clients who heavily short AMC and GME that they risk “forced liquidation.” IBKR knows that such shorts represent an imminent threat to IBKR’s very existence when AMC moons. I expect other brokers to follow suit with similar warnings in the coming days. Here’s an IBKR email from May 25:
Effective May 27, 2021, IBKR will begin phasing in a new margin requirement intended to identify the inherent risk of a portfolio concentrated in one or two equity positions. This requirement will work as follows:
- We will calculate the potential loss for each stock and its derivatives by conducting a stress test that simulates, at a minimum, a price change in the underlying stock of +/- 30% or, for stocks that have significantly increased in value over the last year, a return in price to the lowest 20-day average price over the year.
- An account holding a short, concentrated position in small cap stocks will have each stock subjected to a price change reflective of an increase in market capitalization of $500 million (capping the price change at 100% of the current market capitalization of the stock), $250 million (capping the price change at 300% of the current market capitalization of the stock), and $25 million (capping the price change at 2500% of the current market capitalization of the stock).
- The aggregate projected loss for the one or two concentrated stocks (and their derivatives) from the above scenarios will be compared to what would otherwise be the aggregate portfolio margin requirement, and the greater of the two will be the margin requirement for the portfolio. This differs from the current approach, which only considers the projected loss from a single equity position.
The increase will be implemented in a series of gradual steps over a 15-business day period, beginning after the U.S. close on May 26, 2021, and concluding after the U.S. close on June 16, 2021.
As the margin impact is portfolio-dependent, we recommend that you review the full impact to your account prior to and during implementation. In addition, please take the necessary steps to remain margin-compliant and avoid becoming subject to forced liquidations. To evaluate the full impact of this proposed change on your margin requirements, please see KB Article 2957: Risk Navigator: Alternative Margin Calculator and utilize the margin mode setting in Risk Navigator, select “Margin 20210617.”
Consistent with our stated policy, accounts that are unable to carry a position under this new margin requirement are subject to liquidations to bring the account into margin compliance.