amzn bull put spread

17 Jul

I LOVE The selling. AND THIS IDEA is over earnings. I DO PLAN on it being a slightly volatile spread, but with any buying or resting, theta should take over and the 200 SMA will slowly creep up.

This has MANY check marks and should work nicely

2 Agu

Catatan

2 Agu

Catatan

Alright. HUGE 10% gap down on AMZN. Pretty rare for amzn BUT GIVES us a cool opportunity to win on this spread. Here is the game plan..
since it is a bear candle gapping down (this is a retest gap)
So I expect a fade up today (hitting the 200 sma as a resistance)
Now - since we have TWO WEEKS until expiration , I’m not going to do anything today except sit back in this sea of red and do more analysis over the weekend.
The eventual game plan on probably Monday or Tuesday. Most likely is to purchase back. The sold 165 put, which will cost money. And then we will simply be hanging onto the 160 Long put. Which means if an as Amazon continues lower next week filling the gap from a while ago, Our goal is to sell the 1 60 Long put for more than we have to spend to buy the 165 which will create a profit on this trade.
This is called an unravel.
The other choice, is a sit back, relax and do nothing and experience some bread for the next two weeks, but since the markets are down really strong, we could likely expect about and hopefully Amazon closes above 165 on Friday after next.
Today - I do expect a retest… if we get a NICE, 2%+ bull candle towards the end of day, I will look to unravel the spread next week.
If you can DAY TRADE amzn at all today, you would probably have fun looking :eyes: for one