Signs That AMC Entertainment Could Lose 50% Value By September

Signs That AMC Entertainment Could Lose 50% Value By September

On CNBC's "Options Action," Michael Khouw of Optimize Advisors said that AMC Entertainment Holdings Inc AMC traded more than 1.4 times its average daily volume on Tuesday. It is one of the busiest single stocks, he added.

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There were buyers of 2,500 of the September weekly 13-puts at an average price of 63 cents per contract and sellers of 5,000 of the September 11-puts at an average price of 30 cents per contract, Khouw mentioned. Traders expect shares of AMC Entertainment to plummet around 50% by September expiration, he added.

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AMC Price Action: Shares of AMC Entertainment declined by 6.30% to settle at $22.45 on Tuesday.

Posted In: CNBCMichael KhouwOptimize AdvisorsShort IdeasOptionsMarketsMediaTrading Ideas