AMZN has options-related support on the charts
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 just took out its November 2024 highs and January 2025 lows pivot that had been acting as resistance. On Friday, the year-to-date breakeven level and the +10% year-to-date level were cleared, areas that could now be support. The shares also broke above peak call open interest and could run toward the 250 strike.
Friday saw a huge spike in call volume, and typically indicates significant turning points or big breakouts that can follow through. With a heavy put bias on the 10-day buy-to-open put/call ratio, and options affordably priced, now may be the the time to move in on AMZN.
Our recommended call option has a leverage ratio of 9.8 and will double in value in an 10.3% move in the underlying equity.
