FAANG Stock Takes a Breather Before Stock Split

Amazon.com's 20-t-1 stock split will go into effect Monday, June 6

Managing Editor
Jun 3, 2022 at 11:52 AM
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FAANG stock and tech staple Amazon.com, Inc. (NASDAQ:AMZN) is down 2.8% to trade at $2,439.58 today. The drop comes ahead of the company's highly-publicized 20-to-1 stock split that will go into effect Monday, June 6. Should today's losses hold, AMZN will snap a six-day win streak.

That win streak took the shares right into their 40-day moving average, a trendline that hasn't been toppled since April 21. The stock is down 26.7% in 2022, but in the last week has staged a neat little bounce off its May 24 multi-year bottom of $2,025.20.

Short-term options traders have been incredibly call-biased ahead of next week's split. This is per AMZN's Schaeffer's put/call volume ratio (SOIR) of 0.56, which sits in the low 4th percentile of its annual range.

The good news for prospective options traders is Amazon.com stock tends to outperform options traders' volatility expectations. This is per the equity's Schaeffer's Volatility Scorecard (SVS) tally of 85 out of 100.

 

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