looking at the 2 day chart, you can clearly see there was a battle at $9.00 and $8.50s. therefore, on the two day, a day trader could swing trade this multiple times in that 50 cent range thus it's logical to day trade this within that range rather reasonably. (I do not day trade) i swing trade, scalp once in a while and hold overnight ALL THE TIME as i do not use margin. i can hold a stock forever.
on the 5 day chart you can really see the support and importance of $8.50 be it for options or for loading. i can easily buy 1000 shares at $8.50 and write 10 calls for $9 strike price while trading around a bigger position collecting a nice premium whether or not the stock closes above or below $9.00
also on the 5 day chart, there is clear support at $8.40, $8.20, $8.000 (for sure) and $7.80. but looking closer, you can see how light volume was around $7.80-$8.00 (selling exhaustion) --basically, there are less and less people willing to sell at $8.00 or below $8 now
sure the market have been rocky (expected this) and AMC is still holding up rather well. Also, $9.40-$9.50 is resistance as well. If we break and close above $9.50, this will likely see $9.80-$10.00 and if AMC can close above $10 on friday, BOOM! $10 could be a stretch if markets continue south, but AMC has earnings next week and the re-opening trade is gaining steam.
the more people that buy 100, 500 or 1000 shares the better. the more people that buy shares and write covered calls out of the money, the better as well. collect that premium. there was a ton of premium in options March 5th call options on monday and tuesday.
also, it does appear that AMC has been getting loaded and shares are being held as volume as been a bit subdued, not a bad thing to see volume slow down sometimes. I expect volumes to pick up tomorrow and FRIDAY for sure.
"I AM THE ROCKS OF THE ETERNAL SHORE, CRASH UPON ME AND BE BROKEN."
