As I heard something like this happened with GameStop in early 2021, and is something that happens w market volatility, I’m wondering how this will play out for the MOAS of AMC?
When I ask this, I mean to say, how will the hedge funds continue to cover their short positions if the market regulators have stopped them (and anyone else) from buying AMC stock? Do they halt the trading for a period of time THEN let the buying and selling presume? If so, perhaps we should prepare for a handful of stops (price freeze) along our journey to the top of the mountain.
Any professional or experiential insight into this I think will greatly benefit the community at large. Let’s prepare ourselves (and everyone else) for this legendary Short Squeeze. We can do this!
Market halts are different than what happened in January. During high volatility (> 10% increase or decrease within 5 minutes) will trigger an automatic trading halt (no buying or selling). In January, a lot of brokers only restricted buying and only allowed selling. Basically it was a huge show of corruption. Since then in the Congressional hearings, it was admitted that no hedgefunds were margin called. So the price was basically a huge gamma squeeze (call options coming in the money) and FOMO buying. There are pending lawsuits against the brokers who colluded in this so I hope they don’t pull the same tricks like last time.
What you might be referring to was that some brokers turned off buying of GME stock for their retail investors during the Jan gamma squeeze (Because of liquidity concerns). The HF’s etc. were still able to trade as usual.