Amazon Options Volume Surges on Back of Canaccord Genuity Bull Note

Canaccord Genuity hiked its price to $2,000 from $1,800 last night

Managing Editor
Jul 12, 2018 at 3:19 PM
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With Amazon.com, Inc.'s (NASDAQ:AMZN) highly anticipated annual Prime Day slated for Monday, shares of the e-tailer have been on the move. In fact, just today the stock surged to a fresh record high of $1,798 after Canaccord Genuity hiked its price target to $2,000 from $1,800 -- representing a nearly 14% upside to last night's close. The firm said Amazon is the most stable of all the FAANG stocks, and it sees a "robust outlook" for Prime's subscriber growth.

AMZN is up 2% at $1,790, at last check. From a broader perspective, Amazon stock has been a long-term outperformer, nearly doubling in value from its late-September lows. The stock is up 77% year-over-year, and following its purchase of online pharmacy PillPack, its no surprise that Canaccord Genuity is far from the only analyst aboard team Amazon.

As of yesterday, 32 brokerage firms are covering the online powerhouse, with all but one sporting "buy" or "strong buy" recommendations. Amazon stock's average 12-month price target also comes in at $1,856, representing a nearly 4% premium to current levels.

Unsurprisingly, options volume has been surging on Amazon stock today, and was last seen in the 99th annual percentile, with roughly 106,022 puts and 160,879 calls having exchanged hands. Pulling in the most action has been a series of soon-to-expire weekly 7/13 calls, with the 1,790-strike most active, and data points to heavy buy-to-open activity. In other words, buyers of the call are expecting the FAANG concern to be above the $1,790 mark at tomorrow's expiration.

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