Amazon Stock Eyes Comeback with Prime Day Date Confirmed

Plus, a deep dive into some of the recent options activity surrounding the stock

Deputy Editor
Sep 28, 2020 at 12:39 PM
facebook twitter linkedin


The shares of Amazon.com, Inc. (NASDAQ:AMZN) are staging a comeback today, up 1.3% at $3,134.80, giving investors hope that a tech correction may be over. The e-tail giant also confirmed that its Prime Day sales event will take place on Oct. 13 and 14, after the pandemic forced its postponement. This timing also means the holiday shopping season will start earlier than ever, nearly two months before Amazon typically begins its Black Friday promotions. 

Shifting focus to Amazon's options activity, thanks to data courtesy of Schaeffer's Senior Quantitative Analyst Rocky White, we have a list below comprised of 20 stocks that have attracted the highest weekly options volume over the last 10 trading days, with new additions highlighted in yellow. Amazon is no stranger to this list, and this week is no exception. During the past two weeks, the equity saw 517,623 calls and 339,515 puts exchanged. 

Most Active Options Sept 28

Drilling down, it looks like the weekly 9/25 3,100-strike call was the most popular during this time period, followed by the 9/25 3,200-strike call, with 128,772 contracts between the two. Both contracts expired last Friday, Sept. 25, suggesting these bulls were betting on a rebound from the e-tailer, ahead of expiration. 

A longer-term look shows AMZN sporting a 50-day call/put volume ratio of 1.45 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits in the 59th percentile of its annual range. This implies long calls have been slightly more popular than usual during the past 10 weeks. 

Today's trading tells a similarly bullish story. So far, 60,000 calls have exchanged hands, compared to 37,000 puts. The most popular contract is the weekly 10/2 3,200-strike call, where positions are being sold to open, implying that these traders expect AMZN to remain below the $3,200 mark by the time these contracts expire this Friday, Oct. 2. 

Today, AMZN is looking to nab its highest close in almost two weeks, clawing its way back up the charts after bouncing off support at its 100-day moving average last Monday. The formerly supportive 30-day moving average still looms overhead, however, and could create problems for the equity going forward. Despite these technical obstacles, the security still boasts a 81.9 % year-over-year.

AMZN Chart Sept 28


A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earnings guide for Q3 before it's too late!


  
 
Special Offers from Schaeffer's Trading Partners