Webush removed AMZN from its Best Ideas List earlier
Wedbush removed Amazon.com, 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, Amazon.com 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 Amazon.com 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.