Amazon Stock Cools Off Amid Prime Day Sales

The stock is flashing cheap options at the moment

Assistant Editor
Jun 21, 2021 at 10:09 AM
facebook twitter linkedin


Amazon.com Inc (NYSE:AMZN) kicked off its two-day Prime Day event today, marking the first time the tech giant has held the annual mega sale in June. Other major retailers, including Walmart (WMT), Target (TGT), and Costco (COST) are responding with deals of their own. However, pandemic-related supply-chain issues and strong consumer spending have been hitting the retail sector hard. 

Meanwhile, the equity is brushing off the event. AMZN was last seen down 0.9% to trade at $3,456.63. The stock has been steadily rising since early June, though the shares appear to have been rejected by familiar pressure at the $3,500 region. Now, Amazon stock stands around 6.7% above its year-to-date breakeven, with a 29.9% year-over-year lead to boot.

Elsewhere, the options pits have been much more bullish than usual in the past two weeks. This is per AMZN's 10-day call/put volume ratio of 2.21 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) , which stands higher than all other readings from the past year. 

Plus, the stock boasts affordably priced premium at the moment. This is per the stock's Schaeffer's Volatility Index (SVI) of 22% stands higher than just 5% of all other readings in its annual range, implying that options players are pricing in relatively low volatility expectations. 

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial
 


 


 
Special Offers from Schaeffer's Trading Partners