Amazon.com, Inc. (AMZN) Super Bowl Spot Fails to Reward Option Bulls

Amazon.com, Inc. (AMZN) will report earnings tomorrow night, and will run a commercial during the Super Bowl

Jan 27, 2016 at 2:18 PM
facebook X logo linkedin


Ahead of tomorrow night's earnings report, Amazon.com, Inc. (NASDAQ:AMZN) announced it will run a Super Bowl commercial this year for the first time ever. The ad will feature actor Alec Baldwin, alongside NFL great Dan Marino. The reaction on Wall Street has been less than enthusiastic, though, with shares of the online retailer off 2.1% at $588.62.

Longer term, AMZN has been an absolute beast. The stock has advanced nearly 94% year-over-year, and recently took a sharp bounce off its 32-week moving average, suggesting further upside may be ahead.

Based on what's been transpiring in AMZN's options pits, speculators are certainly hoping for the technical party to continue. Specifically, the stock's 10-day call/put volume ratio of 1.41 across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks in the 95th percentile of its annual range. Stated differently, traders have rarely purchased calls over puts at a faster rate over the last 12 months.

Digging deeper, weekly strikes have been extremely popular over the past two weeks. In particular, the weekly 1/29 600-, 605-, and 640-strike calls have each seen buy-to-open activity at the ISE, CBOE, and PHLX, hinting at bullish expectations within the options crowd.

In so doing, these traders are also expressing confidence in a positive result when Amazon.com, Inc. (NASDAQ:AMZN) hits the earnings confessional tomorrow evening. Currently, the options market is implying a single-day post-event move of 12.9% for the shares, in either direction. This is slightly higher than the stock's average move of 10.3% over the past eight quarters -- with the last four resolving to the upside.

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical levels, and top economic stories straight to your inbox.
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI