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Enoch Root's avatar

Because you could lend out AMC to receive gargantuan lending fees most of that period of high price, you could look at AMC as a low value stock with a huge coupon of indeterminate duration attached. Once the coupon expired (ie borrow cost went back to normal-ish) the underlying (lack of) value was all that remained.

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Levi Ramsey's avatar

The go-to trade on the meme stocks IME is the long-dated put spread. If it keeps memeing the short leg can close out and you end up with a long put the whole time that pays off if it stops memeing.

I had BBBY and AMC put spreads last year where I closed out both legs at a profit.

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