BERNARD ZAMBONIN AND DANIEL MARTINS, 13 July 2021
Apes have been accumulating some losses lately, as AMC stock (AMC) – Get Report moves progressively lower in July. Share price has dropped by almost 20% drop in the last five days alone, possibly suggesting that short sellers remain firmly positioned against the movie theater stock.
Today, Wall Street Memes presents some of the main topics of discussion among the most fervent apes regarding AMC stock.
AMC Short utilization
Well-known trader Trey Collins has pointed out that short interest in AMC continues to grow. According to Ortex, short interest utilization (i.e. the percentage of borrowed shares divided by those available in the lending market) has reached 91%, up from 85% in early July and 78% in early June.
Trey further states that when this ratio approaches 95% to 100%, it is natural for borrowing costs to increase, possibly driving more naked short activity (i.e. shorting shares without borrowing it first). Apes have been particularly vocal about the practice of naked shorting.