Trade of the Week: Unusual Options Activity in Amazon

FAANG Stocks, Options, Videos

Despite the market selling off, there was an unusual amount of options activity in Amazon (AMZN). The online retail giant crushed earnings and the stock was actually up over 7% on a day when most major stock indices were down 2%. The selloff was due to fear over the coronavirus and what impact it may have on the global economy.

AMZN’s earnings were so good, it trumped any negative impact from broad market selling. A trader made a covered call trade in AMZN that allows about 30 points of upside potential in the share price but also brought in $2.7 million in premiums from the short calls. It’s a moderately bullish trade on the stock with about a 4% yield over 3 months.

This chart could make today the easiest time in history to retire and feel rich while doing it.

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[FREE DOWNLOAD] 10 Simple Rules for Trading Options Like a Pro

[FREE DOWNLOAD] 10 Simple Rules for Trading Options Like a Pro

Follow these 10 simple rules from 20-year professional options trading veteran, Jay Soloff and start earning a reliable extra income from options.

 

NO prior experience needed to master these 10 simple options trading rules. 

 

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