Amazon.com, Inc. (AMZN) Option Sellers Set a Short-Term Top

Amazon.com, Inc. is seeing call-selling activity today

Digital Content Group
Dec 3, 2014 at 1:37 PM
facebook X logo linkedin


Amazon.com, Inc. (NASDAQ:AMZN) is sitting 3% lower this afternoon at $316.50, bringing its year-to-date deficit beyond 20%. Option players have taken notice, with the contracts trading at almost twice their typical intraday rate. What's more, the stock's 30-day at-the-money implied volatility has spiked 7% to 27.1%, signaling elevated demand for short-term strikes.

Drilling into the data, the weekly 12/5 320- and 325-strike calls are the most sought-after AMZN options. A solid portion of the volume at both strikes has crossed at the bid price, and volume tops open interest, suggesting possible sell-to-open activity. This theory is partially confirmed, thanks to data from the International Securities Exchange (ISE).

Traders writing to open these out-of-the-money calls are banking on limited upside for Amazon.com, Inc. (NASDAQ:AMZN) through the end of the week, when the series expires. Specifically, the sellers expect the shares to churn below the respective strike prices during the next couple of days -- allowing the contracts to expire worthless, and the traders to secure the initial premium received as their maximum potential profit.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI