mac soared higher than my hopes for the future *ago

The thing is, there's no cap on how high a stock's price can climb. That's because a short trade can only be closed out by buying back those shorted shares. Although your risk on a stock owned outright is just the dollar amount invested in that company, the risk of a short trade is theoretically infinite. See, unlike the more conventional process of a buying a stock at a lower price and then selling it at a higher price in the future, short sellers sell a stock at a higher price now with plans to buy it back, or 'cover,' at a lower price later.

That buying effort is supplied by that stock's short sellers in an effort to quickly close out a trade that's losing money. If you're not familiar with the term, a short squeeze is a way of artificially inducing the buying of a stock that drives its price upward. The next-best reason to own it is hope for a full revival of the theatrical film industry, but that's a long-term long shot as well, if the fact that Chief Executive Officer Adam Aron and Chief Financial Officer Sean Goodman have been selling their shares is any indicationīut, first things first. Simply put, one of the biggest reasons traders have stuck with AMC this long is withering away. In fact, the likelihood of a rally driven by short covering has been shrinking since September, reaching the lowest level in months as of the end of November.

The odds of another one taking shape for this meme stock just fell.again. If you're holding onto AMC Entertainment Holdings (NYSE: AMC) in anticipation of another short squeeze, don't hold your breath.

Mac soared higher than my hopes for the future *ago