Market Overview

Dan Nathan's Amazon Hedge

Share:
Related AMZN
Bernstein: Lionsgate Is David In A Sea Of Goliaths
MKM Turns More Bullish On Amazon, Lifts Price Target To $1,750
Is Amazon Eating Inflation? (Seeking Alpha)

On CNBC's "Options Action," Dan Nathan suggested that investors with a long position in Amazon.com, Inc. (NASDAQ: AMZN) should use options to protect the profit.

He would sell the August 1,045 call for $26, against the long stock position of 100 shares and buy the August 950 put for $26. The sale of the call would finance the purchase of the put and he would have a protection below $950, which is 4.60 percent below the current market price. If Amazon.com trades higher, Nathan is going to be able to participate in the upside up to the $1,045 price level, which is almost 5 percent above the current price.

Posted-In: Dan Nathan Options ActionAnalyst Color CNBC Options Markets Media Trading Ideas

 

Related Articles (AMZN)

View Comments and Join the Discussion!