AMC options surged out of the gate this morning with over 300,000 contracts traded as of writing.AMC options surged out of the gate this morning with over 300,000 contracts traded as of writing.
Asymmetric warfare. A long absence. Fierce loyalty. Of course, while many associate these themes with Christopher Nolan’s “The Odyssey,” it could also aptly apply to the never-ending saga that is AMC and the army of “ape” traders.
In addition to “The Odyssey” breaking records, AMC reported earnings today that beat analysts’ expectations and showed double-digit revenue growth.
“America’s fascinated with The Odyssey this weekend,” AMC CEO Adam Aron said on CNBC’s “Squawk Box” this morning. AMC theatres received 4.3 million guests globally across the weekend, Aron added.
Monday’s rally adds to an almost four-month-long climb in AMC shares to just under 150%. That said, for bulls who’ve been in the stock since its heyday as a retail “meme” favorite after Covid, it’s far from a coming-home party. Shares are still down 99% from its all-time high above $700 in 2021. Of course, the options market played a key role in the meme stock mania, often leading underlying shares of AMC.
More than $6 million in options premium exchanged hands Monday, with $5.5 million tied to call contracts.
The most popular options contracts by dollar amount were the 2 and 2.5-strike calls expiring Aug. 21, which were on offer for 39- and 20 cents, respectively. The most popular trade by volume was the 3-strike call with the same expiry, which needs a 34% rally to break even.
Traders willing to spend more on premium may want to watch Imax, up 37% the past year with call options showing some life today, but not nearly as busy as AMC trading.
“As a result of Covid there was a lot of experimentation but what Hollywood has learned over the last several years is people love to go to movie theaters,” Aron said in the interview. “Studio after studio is turning out movie after movie designed for the big screen.”
