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Amazon Stock Falls On Trump Tax Rumors

Amazon stock is down more than 10% from its record highs

Mar 28, 2018 at 11:19 AM
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Amazon.com, Inc. (NASDAQ:AMZN) is trading lower alongside fellow FAANG stocks Apple (AAPL) and Netflix (NFLX) today. The e-tailer is reportedly in the crosshairs of President Donald Trump, and per Axios, the president could be considering shifting the tax structure for e-tailers. This wouldn't be the first time he targeted the company, and last August, Trump tweeted "Amazon is doing great damage to tax paying retailers. Most recently, AMZN stock was down 3.6% at $1,443.10.

The stock is now down 10.8% from its March 13 record high of $1,617.54, but found a foothold atop its 60-day moving average -- which served as support in mid-2017, as well. Amazon is also holding above its 20% year-to-date level, located at $1,403.36.

Given it's longer-term uptrend, it's not too surprising to see sentiment tilted toward the bullish side. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), AMZN's 10-day call/put volume ratio of 1.25 ranks in the 95th annual percentile, meaning calls have been bought to open over puts at a faster-than-usual clip in the last two weeks.

Amid the stock's recent correction, short-term calls have become cheap relative to their puts counterparts. Amazon's 30-day implied volatility skew comes in at 13.7%, ranking in the 99th annual percentile.

 

 
 

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