Betting on AMZN
Neutral is not really a position or a strategy, is it? I'm talking about putting on an options trade tomorrow ahead of AMZN earnings, due after the market close.
You could buy both sides of this "event" with a strangle and lose up to your entire bet if the price does not move beyond its current price of around $115 by at least 10-15 points (looking at the most popular strikes above and below $115). With tech earnings dragging down the entire market this week, the downside gets the nod.
Or, you could just play it from the middle, with a straddle, and buy a CALL and a PUT on either side of $115 at a price of around $700 for both of those contracts. Then you need a move of only $7 ( a six percent move) to get to break even on your trade. Which way do we go? I would wait until tomorrow to get a sense of the public sentiment near the end of the day and bet against it...
- on a paper trade only!
For reference, MSFT dropped 7% (yesterday's close to today's close) and META plunged 19% in extended trading today.
Alphabet closed down 9.1 percent. FANGMAN I think that's what they call it now... Go figure. Should be FANAMAN. Change is challenging for some people. Not so for sharks.
Facebook
Amazon
Netflix
Google (Now Alphabet)
Microsoft
Apple
Nvidia
This is not an investment strategy, this is an options trade idea and nothing more. Enjoy!
You could buy both sides of this "event" with a strangle and lose up to your entire bet if the price does not move beyond its current price of around $115 by at least 10-15 points (looking at the most popular strikes above and below $115). With tech earnings dragging down the entire market this week, the downside gets the nod.
Or, you could just play it from the middle, with a straddle, and buy a CALL and a PUT on either side of $115 at a price of around $700 for both of those contracts. Then you need a move of only $7 ( a six percent move) to get to break even on your trade. Which way do we go? I would wait until tomorrow to get a sense of the public sentiment near the end of the day and bet against it...
- on a paper trade only!
For reference, MSFT dropped 7% (yesterday's close to today's close) and META plunged 19% in extended trading today.
Alphabet closed down 9.1 percent. FANGMAN I think that's what they call it now... Go figure. Should be FANAMAN. Change is challenging for some people. Not so for sharks.
Amazon
Netflix
Google (Now Alphabet)
Microsoft
Apple
Nvidia
This is not an investment strategy, this is an options trade idea and nothing more. Enjoy!
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