Schaeffer's 43rd Anniversary Stock Picks in 2024

Amazon Stock Sinks on Trump Tariff Threat

FAANG stocks are seeing a heavy sell-off today

Managing Editor
May 31, 2019 at 10:41 AM
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E-tail powerhouse Amazon.com, Inc. (NASDAQ:AMZN) is back in headlines this week, today seeing a steep pullback alongside its fellow FAANG stocks in response to the latest tariff threat from President Donald Trump. At last check, AMZN is trading 1.6% lower at $1,787.44.

Also making headlines for Amazon is its reported interest in buying prepaid cellular service Boost Mobile from T-Mobile (TMUS) and Sprint (S). Sources report the deal would allow Amazon to use the "New T-Mobile" network -- the name T-Mobile and Sprint are currently using to refer to their potentially merged entity -- for nearly six years.

Today's drop puts Amazon stock on pace for its third straight close in the red, and a monthly loss of more than 7%. Helping contain this sell-off has been the 80-day moving average, a trendline that also captured the security's March 8 pullback. From a broader standpoint, AMZN has added 18% year-to-date.

Digging into options, near-term traders have been more call-heavy than usual on AMZN. Amazon stock's Schaeffer's put/call open interest ratio (SOIR) stands at 0.87, meaning call open interest outweighs put open interest among options set to expire in three months or less. Further, this ratio is lower than 85% of all other readings from the past 12 months.

 

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