Investing

How I Successfully Rode the AMC Moonshot for Fun and Profit

Even if the stock price goes higher, I’m satisfied with my gains

Photo by John Baker on Unsplash

Please note: Denise Shelton is not a professional financial advisor. Nothing in this story should, in any way, be taken as investment advice. Please consult a professional before investing in the stock market.

I first began writing about my experience with the subreddit group r/wallstreetbets (WSB) bets in March. Here’s a link if you’re interested. As I mentioned in my earlier story, WSB members banded together and have been promoting heavily shorted “meme” stocks like GameStop ($GME) and AMC Entertainment Holdings ($AMC).

The subsequent rise in some meme stock prices, off and on over the last few months, has cost hedge funds and other short sellers plenty. Much of the credit for these increases has been attributed to retail investors like those on WSB.

According to CNBC, the AMC stock rally in the lead-up to Memorial Day weekend resulted in $1.23 billion in losses for those selling the stock short. Stock in the theater chain shot up 116% in one week of trading. Since January, AMC’s stock price has increased by 1,100%. During this time, I purchased relatively small amounts of both GME and AMC stock. Here’s how I did.