Can Amazon.com, Inc. (AMZN) Retake $380?

Amazon.com, Inc. (AMZN) option buyers may be inspired by an FAA ruling on drones

by Andrea Kramer

Published on Mar 20, 2015 at 1:42 PM
Updated on Apr 20, 2015 at 5:32 PM

Amazon.com, Inc. (NASDAQ:AMZN) is trending higher today, up 1.5% at $378.65. The stock is attempting to settle atop its 10-day and 20-day moving averages for the first time since March 5, and eleventh-hour option players are rolling the dice on more upside this afternoon.

Daily Chart of AMZN since January 2015 with 10-Day and 20-Day Moving Averages

AMZN calls have been running hotter than usual all day. At last check, roughly 27,000 have changed hands, compared to about 17,000 on average at this point in the session. Nine of the 10 most active contracts expire at tonight's close, with potential buy-to-open action detected at the March 377.50 and 380 calls -- the two most popular options thus far.

Speculators buying the calls 377.50-strike calls to open are hoping AMZN extends its momentum north of the strike through the rest of the session. The more aggressive 380-strike call buyers hope AMZN topples the strike by the close. In afternoon action, AMZN peaked at $379.20, and hasn't been atop $380 since March 6.

Today's appetite for short-term calls marks a change of pace for Amazon.com, Inc. (NASDAQ:AMZN) traders. The equity's Schaeffer's put/call open interest ratio (SOIR) of 1.31 stands higher than 84% of all other readings from the past year, suggesting near-term speculators are more put-heavy than usual right now. Perhaps today's bulls are inspired by the company's federal clearance to test drones, which could change the delivery landscape for the e-commerce world. Or maybe they're just betting on the recent broad-market pendulum to favor the bulls.


A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


Look Who's Going Bankrupt Next in America
Porter Stansberry is making a concerning prediction.
First Week in April Provides More Coronavirus-Related Volatility
A slew of coronavirus-related news sent markets on another weekly roller coaster ride
Netflix Stock Heading into Historically Bullish Quarter
NFLX's 10-day moving average has stepped up as support lately
The Latest Investor's Guide to Precious Metals
Learn how to protect savings and maximize returns by investing in precious metals.