Options Traders Frenzied After Amazon's Layoffs

The equity is down more than 45% year-to-date

Deputy Editor
Nov 21, 2022 at 11:56 AM
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Last week, Amazon.com, Inc. (NASDAQ:AMZN) joined the growing list of Big Tech companies announcing layoffs. The company let go of roughly 10,000 employees, or around 3% of its workforce. Plus Amazon.com revealed it entered a 364-day revolving credit agreement, which provided the e-commerce name with an unsecured revolved credit facility with borrowing capacity of up to $10 billion.

Options traders took note of all the updates, with AMZN securing a spot on Schaeffer's Senior Quantitative Analyst Rocky White's list of 10 stocks that have seen the highest weekly options volume over the last 10 trading days. Per the table below, 14,067,485 calls and 10,525,021 puts were traded during this period, putting Amazon.com stock just behind Tesla (TSLA) for highest option volume amongst all equities. The most popular contract in the last two weeks was the November 100 call.

MAO Chart November 212022

At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 10-day put/call volume ratio equates to 2.20, ranking in the 99th percentile of annual readings. Echoing this, AMZN's Schaeffer's put/call open interest ratio (SOIR) of 0.50 stands higher than 2% of readings from the past year. Both imply calls are outpacing puts on an overall basis. 

The equity is down 2.8% to trade at $91.48 at last check, though it is holding above its Nov. 9, more than two-year low of $85.87. The $104 level has rejected AMZN over the past month, contributing to the stock's 45.1% year-to-date deficit.

AMZN Chart November 212022

 

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