Amazon.com, Inc. (AMZN) Bombarded By Eleventh-Hour Call Players

Amazon.com, Inc.'s (NASDAQ:AMZN) weekly 5/29 series of options is in focus today

by Karee Venema

Published on May 29, 2015 at 2:45 PM
Updated on Jun 24, 2020 at 10:16 AM

The tech sphere is buzzing with new developments today, including Amazon.com, Inc.'s (NASDAQ:AMZN) announcement that it will once again be expanding its same-day delivery service to certain Prime members, and reports that the company is in talks to develop its own line of food and household products. The headlines have AMZN trading higher, and eleventh-hour option players eyeing more upside through tonight's close.

Taking a quick step back, calls are trading at 1.4 times the average intraday pace. Weekly 5/29 options are in focus, with nine of AMZN's 10 most active strikes residing in this series. The stock's weekly 5/29 430-strike call has seen the most action, and according to the International Securities Exchange (ISE), there appears to be a mix of buy- and sell-to-open activity occurring here.

By purchasing new positions, traders expect AMZN to rally north of the strike by tonight's closing bell -- when the series expires. Meanwhile, by writing the calls to open, the goal is for the security to settle the week south of the strike. Earlier, AMZN hit an intraday high of $432.50, but hasn't closed north of $430 on a weekly basis since the first full week of May.

That's not to say AMZN hasn't been making technical inroads this year -- tacking on 38.4% to trade at $429.35. Meanwhile, in the options pits, call buying has been picking up speed in recent weeks. At the ISE, Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Amazon.com, Inc.'s (NASDAQ:AMZN) 10-day call/put volume ratio of 1.32 ranks in the 73rd annual percentile.

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