Stocks quoted in this article:
An article in today's Washington Post
presented conflicting sentiment on online retailer Amazon.com (AMZN – 11-11/16). One electronics distributor said it has ceased delivery to AMZN until the retailer pays its outstanding bill with the vendor. Other vendors expressed concern over the future of the firm, even though AMZN remains up-to-date with current payments. Defending his creation, AMZN chief executive (and Time's
1999 man of the year) Jeff Bezos asserted that the company had an "excellent" payment record and claimed that AMZN has never been in better shape.
Investors seem to be siding with the vendors, as the stock has dropped more than five percent today to register a new annual low at 11-5/16. The equity is sitting nearly 90 percent below its all-time high achieved in December 1999.
On the options front, AMZN might face some challenges overhead, as the site of heaviest open interest in the front-month series resides at the March 15 call strike. More than 6,300 contracts currently dwell at this out-of-the-money strike. By contrast, the most-active put in the March series is the March 10 option, home to 3,882 open puts.