Options Bulls Target Amazon.com Stock Ahead of Earnings

The Big Tech name will report earnings after the close today

Laura McCandless

Deputy Editor

Feb 2, 2023 at 2:14 PM

AMZN

Options bulls are targeting Amazon.com Inc (NASDAQ:AMZN) ahead of its fourth-quarter report, due out after the close today. So far 1.16 million calls have crossed the tape, which is triple the call volume typically seen at this point and over double the amount of puts exchanged. Expiring tomorrow, the weekly 2/3 120-strike call is the most active contract, with new positions being opened there.

At last glance, AMZN was up 7.2% to trade at $112.69, as Big Tech rallies behind Meta Platforms' post-earnings surge. The stock is still seeing pressure from its 200-day moving average, however.

amzn feb2

A look back at Amazon.com's post-earnings history paints a fairly negative picture for the stock. AMZN finished only two of its last eight post-earnings sessions higher. The options pits are pricing in a 7.1% swing, regardless of direction, which is higher than the 11.7% next-day move the stock has averaged over the past couple years.

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