Dan Nathan suggested on CNBC's "Options Action" a bearish options trade in Amazon.com, Inc. AMZN. He thinks the stock has a fundamental driver that could take it lower. He added that the stock is showing signs of weakness because it broke its up trend line and it stayed below the line for a month and a half.
Nathan expects Amazon to retest $1,500 and he wants to use options to make the bearish trade. He wants to buy the Nov. $1,760/$1,500 put spread for $50. The trade breaks even at $1,710 or 4.12% below the current stock price. It's going to reach its maximal profit of $210 if the stock drops to $1,500 or lower.
Related Links:
Carter Worth And Mike Khouw's Bristol-Myers Squibb Options Trade
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date of Trade | ticker | Put/Call | Strike Price | DTE | Sentiment |
|---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
