AMC Ent. Stock has had its fair share of bulls and bears or retail investors and short seller’s spew different theories and ideas over the last few years.
On one hand the bullish retail investors known as the Apes think that AMC Stock could MOASS and reach new all-time highs and beyond with a short squeeze potential.
On the other side the short sellers such as WEDBUSH GIVES AMC STOCK $2 PRICE TARGET! Other short sellers of AMC Stock hope that the stock goes bankrupt and reaches $0 per share even.
SHORT SELLERS WRONG ABOUT AMC STOCK?
AMC Entertainment’s big rally this month has pushed mark to market losses for AMC short sellers around $653 Million in losses reported by S3 partners data.
SHORT SQUEEZE UNLIMITED LOSS
When a short squeeze is in fact starting to happen; The stock which is heavily shorted is starting to gain more and more buyers and the short sellers are being forced to buy back their shares as soon as possible, the downside potential for the short sellers is infinite (meaning it could reach any number) until a broker issues margin calls which are likely during this scenario. This is why shorting a stock is so dangerous and why buying a stock which is sold short could be a good opportunity perhaps.
THE BOTTOM LINE
Short squeezes are here to stay in the stock market and those who are most informed could make life changing amounts of money off the next major short squeeze. Timing the next short squeeze will be tricky, but if you know where to look… YOU could be cashing in big during the next major short squeeze to the moon.