Todd Gordon's Amazon Options Trade

On CNBC's "Trading Nation", Todd Gordon suggested a bullish options strategy in Amazon.com, Inc. AMZN. He said the stock is moving towards the top end of the parallel uptrend channel and he identified a cup and handle pattern on the daily chart.

Gordon believes the stock could move towards $1,160 - $1,180 price range and he wants to use options to get a long exposure. He wants to buy the December 1,135/1,140 call spread for $2.13. The trade breaks even at $1,137.13 or 1.2 percent above the current market price. He can maximally make a profit of $2.87. Gordon advised his followers to place a stop loss at 50 percent of the premium paid.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date of Trade
ticker
Put/Call
Strike Price
DTE
Sentiment
Posted In: CNBCOptionsMarketsMediaTodd GordonTrading Nation
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!