Wednesday, October 10, 2012

AMZN new weekly trade, Oct/10/2012

Trade update (Oct/12/2012):
Closed for $2.5 for almost  28% of max loss
________________________________________________________
AMZN fell below it's one standard deviation move after being such a strong stock in the last few weeks. $245 is in the middle of one standard deviation and two standard deviation and I think there are good chances AMZN will hold 240-245 range for the week, maybe even next week. Volatility is higher which gives some juice to the premium too.

AMZN daily chart showing standard deviation and increasing volatility













Trade:
Sell 1X $245 Weekly put
Buy 1X $240 Weekly put
(Got a credit of $1.5)

*Please do your own research before buying any stock listed here. Disclaimer.
>> Subscribe to our posts.

No comments:

Post a Comment