Big Tech Stock Sports Solid Technical Setup

AMZN managed to move higher despite surging short interest

Oct 4, 2023 at 11:27 AM
facebook X logo linkedin

Subscribers to Schaeffer's Weekend Trader options recommendation service received this AMZN commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services. Inc (NASDAQ:AMZN) stock has pulled back to its 126-day moving average (or six-month trendline), which coincides with its +50% year-to-date level. Plus, $124.68 – a level that appears to have kept last week’s pullback in check – is 1.5 times the stock’s 2023 closing low.
The security gapped higher after earnings in early August, but is now trading back around its pre-earnings close. Plus, Wednesday’s doji candle may be indicative that AMZN’s short-term pullback from its 2023 peak is over.

AMZN WT Repost Chart October 2023

Though short interest isn’t very high relative to float and volume, it’s still worth noting that shorts have increased their position size by 43%, but the stock still rose despite this headwind.
There is plenty of room for AMZN to run up to analysts’ 12-month consensus price target of $170.37. Plus, the 120- and 125-strikes are both put heavy, as well as all options expiring through December. Our recommended call option has a leverage ratio of 6.57, and will double on a 15.3% pop in the underlying shares.



How to collect 1 dividend check every day for LIFE

Did you know you could collect 1 dividend check every day the market is open? You could also do it starting with just $605! For me, I'm collecting 70 dividend checks every quarter…which averages around 1.1 dividend checks every business day. There's no trading behind this... no penny stocks or high-risk investments. All you do is buy and hold and you're set. There's no set up required either. If you start buying the dividend stocks I show you today... you could collect 1 dividend per day starting as early as this week. Click here for all the details.