Andrew Keene's Amazon Options Trade

Andrew Keene of AlphaShark recommended on CNBC's Trading Nation a bullish options strategy in Amazon.com, Inc. AMZN. He thinks the stock is heading towards $1,000, but he believes it's possible that we're going to see a moderate pullback first.

On the daily chart, he identified a technical support at $860 price level and he wants to use options to buy the stock, if it pulls back to that price level. Keene wants to sell the May 860/850 put spread for a total credit of $2.50. If the stock stays above $860 at the May expiration, Keene is going to collect the premium. Below $857.50, he starts to lose money and he can maximally lose $7.50.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date of Trade
ticker
Put/Call
Strike Price
DTE
Sentiment
Posted In: CNBCOptionsMarketsMediaAndrew KeeneTrading 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!