AMC Entertainment: Blockbuster Options Activity

AMC Entertainment Holdings Inc AMC climbed close to 6% on Tuesday, following Monday’s massive 15% selloff.

On CNBC's "Options Action," Mike Khouw of Optimize Advisors said AMC Entertainment is typically among the top 10 most actively traded single-stock options in terms of contracts.

Chart Wars: What Will It Take For AMC And GameStop To Buck The Downtrend?

AMC traded about 1.7 times its average daily put volumes on Tuesday. The most active puts were the December 20. There were buyers of 44,000 contracts at an average price of 64 cents per contract, Khouw mentioned. Traders are betting that the stock will decline by at least 20% by Friday.

While call volumes have declined steadily over the last quarter, put volumes have steadily increased, Khouw said.

“In fact, over the last five days, it’s probably been double what the average was in the couple of months we saw before that,” he added.