AMC saw a remarkable increase in options trading, with over 300,000 contracts exchanged, nearly five times the average for the past month. The bullish sentiment was evident as approximately 100,000 calls were purchased against 62,000 sold, and fewer than 10,000 puts were bought.
This surge coincided with the film 'The Odyssey' achieving record box office numbers and AMC reporting earnings that exceeded analysts' expectations, showcasing double-digit revenue growth. CEO Adam Aron noted that 4.3 million guests visited AMC theaters globally over the weekend, indicating a strong recovery in cinema attendance post-COVID.
Despite this positive momentum, AMC shares remain down 99% from their all-time high of over $700 in 2021, even after a nearly 150% increase over the past four months. The options market has historically influenced AMC's stock price, and on this day, over $6 million in options premiums were traded, predominantly in call contracts.
The most actively traded options were the 2 and 2.5-strike calls, which are set to expire on August 21, indicating traders are optimistic about future price movements. Aron emphasized the renewed interest in theatrical releases, suggesting that studios are increasingly focused on creating films for the big screen, which could further benefit AMC in the long run