Amazon options traders are betting on a breakout in the next month
Amazon.com Inc (NASDAQ:AMZN) stock is down 0.9% to trade at $269.34, unable to capitalize on Snowflake's (SNOW) massive $6 billion AWS deal. After a May 5 record high of $278.56, the shares have consolidated below this peak. Options traders, though, are full steam ahead as the e-commerce giant approaches a historical landmark.
Amazon.com has appeared -- for over two years straight -- on Schaeffer's Senior Quantitative Analyst Rocky White's list of names on the S&P 500 Index (SPX) that have attracted the most options volume in the last two weeks. During this most recent timeframe, over 4.7 million calls and roughly 1.8 million puts were exchanged. The May 270 call was the top trade in the last two weeks, with the May 265 call trialing closely behind. There's also spread activity going on at the June 270 strike.
AMZN's market cap sits just under $3 trillion at the moment, per the chart below. Any of the calls placed in June would have the stock eclipsing this mark, joining Microsoft (MSFT), Apple (AAPL), Alphabet (GOOGL), and Nvidia (NVDA). Year to date, Amazon stock is up 17%.
The security is seeing attractively priced premium. AMZN's Schaeffer's Volatility Index (SVI) of 31% ranks in the 20th percentile of its annual range, meaning options traders are pricing in low volatility expectations.