AMZN Ping Pong StrategyAMZN Ping Pong
1 year range from Sept '20
AMZN Levels: major levels bolded
Jefferies price target lmao: 5300
measured move pt: 4257
(invalid as broke down from original consolidation pattern)
1.618 fib: 3800
Major Trendline Resist: 3750
Top Range: 3550
0.786 fib and trendline resist: 3360
Wedge consolidation pivot: 3317
(above is 3475, below is 3170)
local hourly SR: 3300
0.618 fib: 3275
0.50 fib and big triangle: 3250
Key Pivot: 3170
(above is 3317, below is 3000)
0.382 fib weak sup: 3150
(sell 3150p spreads when bounce from 3170 pivot, used as risk off if 3170 is broken to downside)
big psych level: 3000
Technically Bottom Range: 2950
AMZN Trading Rules:
Trade level to level if intraday trades
Trade against major levels for larger swings
Look left on hourly timeframe for recent local S/R levels or S/D zones
to confirm/update levels, respect SwingArms and AvgDailyRange local levels intraday
Never swing naked AMZN weeklies, if you want to hold overnight make it a spread
Only can swing AMZN against major levels, and go at least a week out to give yourself some time
Can use OTM options to bring down cost if scalping intraday
but be aware of opening drive, lunch time reversal, power hour,
all have different effects on option's price with the big changes in IV and theta decay
Best to use spreads to lower cost and volatility risk
Earnings makes AMZN premium more funky than usual so strategies may work differently around earnings week
I prefer to play long side by either doing a call debit spread for trend swings and OTM put credit spreads for reversals on support bounces
(choose strike by below major support for PCS and max up to major resistance for CCS)
For short side I don't typically like to swing short for a long time, so usually will only fade rejection of resistance on intraday/major levels
Will prefer a put debit spread if I really want to go swing short from major resist (rarely) over selling calls as AMZN can make some crazy moves
Take profit on credit spreads usually around 30%, 50% and 90% don't need to let it expire
Best day to collect premium on AMZN is Theta Thurs, OTM options burn heavily between Thurs and Fri + weekend typically on AMZN
Preferred Indicators:
MashumeHullTV : Trend Strength
QQEMoMoTV : Momentum
SwingArms : S/R Levels
AvgDailyRange : S/D Zones
VolumeProfile : VPA
