Landon Capital

Shares of AMC Entertainment (NYSE:AMC) Holdings Inc have been hit by a wave of bearish options bets amid uncertainty over the company’s stock conversion plan.

The one-month moving average of open puts versus call options on AMC hit 1.7-to-1 on Thursday, the most bearish the measure has been in at least four years, Trade Alert data showed. Puts convey the right to sell shares at a fixed price in the future while calls offer the right to buy shares.

At issue is the company’s efforts to convert its preferred class of shares – which trade on the New York Stock Exchange under the symbol “APE” – into its common stock.

The debt-laden AMC raised capital last year by creating preferred shares, which trade at a discount to the common stock. While the common shares finished Thursday at $4.52, the APE preferred shares ended the session at $1.86.