AMC Entertainment Holdings Inc (AMC)

[fourdint]

Tim lousy at explaining but I'll try. There are 2 ways I know of to short: 1) safest is buy a put option at some strike price at some future date. You can certainly execute that put option at any time or resell put to someone else, but makes no sence to do so out of money as can let option expire. That isn't what is happening here. 2) Risky as unlimited up side losses, is short selling. In effect, to exit the short position, they have to buy stock at current market to *replace* stock they already sold (shorted). They can buy stock at any time to close their short position. There is no "early" as no time limits, hence "early" would be buying at a loss to *replace* in this case. They also have to maintain margin, basically, having more than the ability to cover/close/purchase their short. If they can't maintain margin requirements, they'll get a "margin call" and in effect forced to settle.