I've been reviewing AMZN's daily trading during the time I was away. Yesterday was a
telling moment for this stock, as fears of a Mid East conflict rippled through the market.
During that time, AMZN was repeatedly pressed to go below $1800. Every time, it
refused. Combined with its recent strength, and my gut instinct having traded options on
this stock for years, I'm recommending this 2-step trade.
Step 1 is this:
LT2: Sold (5) AMZN 1805/180250 put spreads for +.84 (+4.20). MU = 1.66 (8.30)
at 10:49am when AMZN = $1814.
Thesis: > 1805.
What is the 2nd step? For those willing to accept this trade as a 1-and-done, there is
no 2nd step. ButI I expect to sell call spreads later in the week when I perceive a top
for the week has been hit.