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 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. 

Trader: Sell These 8 Stocks in 2021



Special Offers from Schaeffer's Trading Partners