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.

Amazon.com 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.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI