Here’s how legendary short-seller Jim Chanos is taking advantage of the arbitrage between AMC stock and the new APE shares Famed short-seller Jim Chanos is buying AMC Entertainment''s new preferred equity share class, dubbed "APE." At the same time, Chanos is shorting AMC Entertainment''s common stock, until the two share prices converge. "They are economically the same security, and there seems to be a lot of confusion about that," Chanos said. Legendary short-seller Jim Chanos sees a big opportunity in AMC Entertainment following the issuance of its preferred equity share class, dubbed "APE." The hedge fund manager, who was short shares of AMC Entertainment last year, told CNBC on Tuesday that he initiated a new short position in the movie theater chain''s common share class. Yet at the same time, Chanos bought shares of APE, as he sees an arbitrage opportunity between the price of the two securities. AMC Entertainment stock currently trades at $9.56, while the AMC preferred equity share class trades at $7.20. "That spread is economically an arbitrage," Chanos said. Chanos expects that $2.36 gap between the two share prices to eventually close, as "they are economically the same security, and there seems to be a lot of confusion about that," he said.