Market Overview

Todd Gordon's Amazon Options Trade

Share:
Related AMZN
How Millennials, Baby Boomers Are Reacting To Market Volatility
Positive Vibes: Bank Results Shift Focus Back To Earnings as Overseas Stocks Rise
Bloomberg: Walmart considering streaming service to take on Amazon (Seeking Alpha)

On CNBC's "Trading Nation", Todd Gordon suggested a bullish options strategy in Amazon.com, Inc. (NASDAQ: 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.

Posted-In: CNBC Todd Gordon Trading NationOptions Markets Media

 

Related Articles (AMZN)

View Comments and Join the Discussion!

Morgan Stanley Likes The Odds Of A Las Vegas Sands Investment

ETP, Red Robin, Marriott: 'Fast Money' Final Trades