Why Is Jim Chanos Betting Against Red-Hot AMC Stock? AMC (NYSE: AMC ) stock is in full focus after acclaimed investor Jim Chanos announced that he had opened a short position in the movie theater chain. However, Chanos also announced that he had purchased shares of AMC Preferred Equity Units (NYSE: APE ), resulting in an arbitrage trade. An arbitrage strategy is used when an investor seeks to exploit price differences in the same or identical assets. Shares of APE stock began trading earlier this week on the New York Stock Exchange (NYSE). Anyone who purchased shares of AMC before August 22 also received one unit of APE. Each APE unit carries the same voting rights as a share of AMC and there are 516.82 million APE shares outstanding, the same number of AMC shares outstanding. AMC noted that the initiation of APE would “be similar to a 2|1 stock split .” CEO Adam Aron added that an investment into AMC before the APE dividend was issued is worth the combination of an AMC share and an APE unit. With that in mind, let’s dive into Chanos’ arbitrage trade.