Matt Kohrs, a popular YouTube streamer, appeared on Benzinga’s YouTube show “Power Hour” Monday to discuss how he is trading AMC Entertainment Holdings Inc (NYSE: AMC).
Why AMC: AMC Entertainment’s stock got on Kohrs’ radar during the initial surge in GameStop Corp. (NYSE: GME) at the beginning of 2021.
Kohrs has always been a fan of the movie theater chain, he said, adding he has an AMC movie rewards pass and is an avid movie-goer.
AMC Entertainment is a favorite stock among retail investors because of the nostalgia associated with the movie theater company, he said. Kohrs thinks the low price per share also added to the attractiveness of the stock.
The AMC Entertainment narrative is “a story that resonates with people on a deeply human level,” Kohrs noted.
How Kohrs Is Playing AMC: Kohrs currently owns stock and options in AMC Entertainment because of the short-squeeze narrative, he said, and currently views it as a momentum-based swing trade.
Kohrs said he buys call options and then rolls them out in order to collect profit along the way. However, he hasn’t sold any shares, rather continually increasing his share position, he added.
Kohrs focuses on open interest in options contracts and tends to target call options slightly out of the money.
Kohrs told Benzinga he purchased $60, $65 and $70 strike call options today that will expire this week. When the stock reaches $70 per share, he expects to see extremely high volatility again as market makers begin hedging their positions.
When the short-squeeze thesis no longer exists, he will evaluate the stock on a longer-term investment basis, Kohrs said.
“The squeeze is squoze” when a large majority of the shares on loan are returned to their original owners, Kohrs told Benzinga.
AMC Price Action: AMC Entertainment has traded as high as $72.62 and as low as $1.91 over a 52-week period.
Watch Matt’s full interview in the video below:
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