A hedge fund lost 10% in just a few days after a sudden spike in AMC stock derailed an options trade, new report says | Markets Insider
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Hedge fund Mudrick Capital took a hit on its call options amid a surge in share prices of AMC Entertainment.
Gary Hershorn/Getty Images Hedge fund Mudrick Capital lost 10% in just a few days of trading as shares of meme stock AMC Entertainment spiked to record highs, the Wall Street Journal reported, citing people familiar with the matter. The losses were driven by call options sold by firm founder Jason Mudrick, according to the WSJ. The position, intended to serve as a downside hedge, ended up backfiring as the stock surged too much, too fast. The runaway share spike occurred on June 2, when AMC shares rose as much as 127%, to $72.62, well beyond the strike price of $40 for Mudrick's options.…
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