$AMC option bulls catch a double feature

AMC Entertainment (AMC) is running higher this session and bullish option traders are turning big profits on positions opened last Monday.

Market Rebellion’s Unusual Activity Service found unusual call activity in the name last Monday:

–On May 24, 5,500 June $16.50 calls were purchased for $1.00 to $1.04 against no open interest.
–And later in that same session, 5,900 June $17 calls were purchased for $0.96 to $1.05 above open interest of 3,322 contracts with shares at $12.58.

Those calls have respectively traded up to $53.20 and $55.55 so far today, at least 51 times their purchase prices. The stock rallied by as much as 477.27% in the same time period, a large move but nowhere near that of its options on a relative basis.

This marks the second and third winning trades in the name to be posted on Market Rebellion in the last week.

Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.

AMC traded to a high of $72.62 earlier this session and was last at $60.83 this afternoon, up 89.86% on the day. The Company announced an initiative to engage with retail shareholders this morning.