Lets face it, the apes buying AMC calls would be better off playing the lottery because the odds are horrible for both, but at least with the lottery the payoff is huge. Why lottery ? Because AMC is a cult stock that’s being driven by irrational activity, but the possibility of it crashing becomes stronger as the cash burn doesn’t stop.
Secondly the possible dilution in the future will make it even harder for the stock to appreciate further due to the increased share count.
I continue to believe that AMC is an unattractive investment that’s not worth owning for the long term, especially at the current price.
And lastly by putting EW to this chart, it points to more downside.
Please note that these are my personal views and could be wrong.