In Tuesday’s Blitz Daily with Lance Ippolito, we take a look at beleaguered movie theater chain AMC as it moves in a surprising direction coming out of the pandemic… gold mining.
Yep, gold. Silver, too…
In a move that surprised just about everyone, AMC announced it’s buying a major stake in Hycroft Mining Holding, which has a 71,000-acre gold and silver mine in northern Nevada.
While the meme stock craze has faded, AMC still has a war chest of $1.8 billion at its disposal, and is investing nearly $28 million into Hycroft in exchange for a 22% stake.
Will this decision strike gold, or be the next silver screen tragedy?
“To state the obvious, one would not normally think that a movie theater company’s core competency includes gold or silver mining,” CEO Adam Aron said.
Most analysts are indeed baffled, with one even calling the move “bizarre.”
And it seems at least one big money trader is firmly betting against the company, buying 1,300 contracts for the March 22 $13.50 puts for more than $158,000 in premium! (Shares are currently around $14.30.)
Of course, if you’re looking to move on from the meme stock trend, I have a few more trades seeing institutional order flow…
- AMC Entertainment Holdings Inc. (NYSE: AMC): March 25 $13.5 PUT.
- Microsoft Corp. (Nasdaq: MSFT): March 25 $295 CALL.
- Delta Air Lines Inc. (NYSE: DAL): March 25 $36 CALL.
And to find out how I trade Shadow Blitzes like these as soon as I see them, check out my Weekly Blitz Alerts strategy!
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Blitz Daily With Lance Ippolitto
At Weekly Blitz Alerts, we like to print money, baby! I know, I know, you’re probably thinking, “Lance, how do we do that? Print money? Come on…”
But in all seriousness, we follow the big fish and what they’re buying. And we do that with my proprietary Blitz Tracker, which alerts me to big, institutional options order flow throughout the day. Then we get in on these plays and follow the “smart money.”
By doing this, we cash in whether the broader market is going up, down or sideways.
The Blitz Daily with Lance Ippolito is where I go over a handful of options trades that hit my Blitz Tracker each day, Monday through Thursday. I will break down the trade with the sexiest order flow and tell you exactly what I think can happen with that stock by the next day’s opening bell.
If you want in on these fast-moving options plays, with entry, exit and profit targets sent directly to you via text and email alerts, be sure to sign up for Weekly Blitz Alerts!
In the meantime, you can follow me @LanceIppolito on Twitter, Instagram and our YouTube channel for more trading insights and tips. And as always, you can find me right here talking stocks and options trading — and printing money — on WealthPress.com!