Stock Extends Losses After Wedbush Bear Note stock saw an over $206 billion market cap loss on Friday

Deputy Editor
May 2, 2022 at 10:26 AM
facebook twitter linkedin

Wedbush removed, Inc. (NASDAQ:AMZN) from its Best Ideas List earlier, with the brokerage firm citing its "investment price discipline." The e-tail stock saw its worst day since November 2008 on Friday, losing $206.41 billion in market cap following its first-quarter earnings report. This market cap loss was the second-largest total for a single-day, behind Meta Platform's (FB) post-earnings drop.

In turn, stock was last seen down 2.9% to trade at $2,414.08, and is now set to close at roughly two-year lows. It has been a rough year for the Big Tech concern so far, with the 20-day moving average moving in as a layer of resistance in early April. Year-to-date, AMZN is down 25.5%.

Short-term options traders seem to be betting on a bottom for stock, per its Schaeffer's put/call open interest ratio (SOIR) of 0.79, which sits higher than just 10% of readings from the past year. This indicates options traders are operating with an unusual call-bias.

Speaking of options, traders today are swarming the security. In fact, 58,000 calls and 47,000 puts have been exchanged so far, which is nearly double what is typically seen at this point. The May 4,000 call is the most popular by a wide margin, while new positions are being opened at the weekly 5/6 2,4000-strik put, which expires at the end of this week.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners