AMC Entertainment Holdings, Inc. (AMC), notably of the meme-stock fame, has been hit by a wave of bearish options bets lately. Reuters reported that, as of last Thursday, the one-month moving average of open puts versus call options on AMC hit 1.7-to-1, the most bearish in four years.
The company had issued preferred shares (APE) to raise capital. In March, the company announced that shareholders had approved combining AMC common shares and APE units. Should this happen, traders expect the common stock price to fall while the APE shares will rise in value.
