27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Amazon.com, Inc. (NASDAQ: AMZN) reports earnings after the close on Thursday and three technical traders told Benzinga what they think of the stock.
CMT Christian Tharp thought that Amazon “has major support at $185 dating back to May of last year,” but that resistance forms near $330.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
“The release of the company's earnings report could very well be the catalyst the sends the stocking breaking one of those key levels,” according to Tharp.
Rod David told Benzinga, "Last week's bounce peaked just shy of reversing momentum back up, but it might have created a buffer to help absorb a negative knee-jerk reaction down.”
David noted that since November, the stock had dropped 55 points but rallied 30 points “until testing the drop's last relative high around $315. Recovering it before earnings would have greeted the news from a position of strength.”
With the stock holding above $302, it “has avoided reversing momentum back down, but an initially favorable reaction must exceed $320 to actually reverse the trend back up,” according to David. If the news was greeted from “under $302 or $296 [it] could easily resume the last downleg which would next target” the $263 level.
Jay Wolberg felt that Amazon’s revenue growth “has come at the cost of rising expenses, resulting in negative earnings.” These expenses have been reflected by the stock “moving lower over the past year and it is now at risk of breaking support at $300, which could send it down to the $250 area.”
Wolberg concluded that the “options market is pricing in a large move with AMZN's current implied volatility at 45, which is a significant premium compared to its actual volatility at 26.”
Shares of Amazon recently traded at $312.12, up 2.70 percent.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.