TheOptionPlayer.com executed an Amazon.com, Inc. (NasdaqGS: AMZN) short-term June 8th expiration (7-day) option strategy. Confirmation information is displayed directly below. Login in with a Premium Subscription to view data/images
Why we recommend it:
The difference between funds received and paid out is an approx. 20% profit if the Amazon.com shares close below $1,665 on Friday June 8th, but immediately execute a trade adjustment if it appears the price is moving higher. See Guidelines page at www.theoptionplayer.com/ for explanation on how trade is set up.
• As seen in the chart below, the Amazon.com, Inc. (NasdaqGS: AMZN) shares have been in a relatively tight trading range after exploding higher followings its stellar quarterly earnings announcement.
• Amazon stock is near the overbought level where the price usually stabilizes and pulls back.
• Technical momentum indicators are solidly neutral the past few weeks.
• Even after the superb quarterly earnings numbers Amazon shares couldn’t attain new highs and remains below a firm resistance level.
• We recently executed a similar trade that was profitable.
• Unless there is some extraordinary announcement or the market explodes higher, it is highly improbable for Amazon shares to suddenly make a series of all-time highs required to be above our target price at June 8th expiration.
52-Week High: $1,638.10
52-Week Low: $927.00