Amazon Options Trading: New December 2027 Contracts Available

Investors in Amazon.com Inc (Symbol: AMZN) can now engage with new options that began trading today for a December 2027 expiration. A key factor influencing the price that option buyers are willing to pay is time value. With 1,023 days remaining until expiration, these newly available contracts provide sellers of puts or calls the potential for higher premiums compared to contracts with nearer expirations. Our YieldBoost formula has examined the AMZN options chain and identified notable put and call contracts.

Attractive Put Option Opportunity

The put contract at the $210.00 strike price is currently bid at $29.50. By selling-to-open this put contract, an investor would commit to purchase the stock at $210.00 and simultaneously collect the premium, resulting in a cost basis of $180.50 per share (excluding broker commissions). For investors eyeing shares of AMZN, this could be a more appealing option than purchasing them at the current price of $214.43/share.

This $210.00 strike price represents a roughly 2% discount off the current trading price, indicating it is slightly out-of-the-money. Current analytical data, including greeks and implied greeks, suggest a 70% probability that the put contract will expire worthless. Stock Options Channel will monitor these odds over time and publish updates on their website under the contract detail page. If the contract does expire worthless, the premium would yield a 14.05% return on the cash commitment, equating to 5.01% annualized—a figure we refer to as the YieldBoost.

Call Option Scenario

Turning to the call side, the $280.00 strike price call contract has a current bid of $30.55. An investor purchasing shares of AMZN at $214.43 and then selling-to-open this call would commit to selling the stock at $280.00. Adding in the premium collected means a projected total return of 44.83% if the stock gets called away at the December 2027 expiration (before broker commissions). However, significant upside may be possible if AMZN shares increase dramatically. Thus, studying the stock’s trailing twelve-month trading history and fundamental factors is important.

Below is a chart depicting AMZN’s trading history for the past twelve months, with the $280.00 strike highlighted in red:

The $280.00 strike represents approximately a 31% premium to the current trading price, making it out-of-the-money by that percentage. There is a potential for the covered call contract to expire worthless, allowing the investor to retain both the shares and the premium collected. Current analytical data indicates a 51% chance of this scenario occurring. Stock Options Channel will track these odds over time and include a chart of those changes on their website, alongside the trading history for the option contract. If the covered call does expire worthless, the premium would amount to a 14.25% additional return for the investor, or 5.08% annualized, which we also term as YieldBoost.

The implied volatility for the put contract stands at 33%, while the call contract’s implied volatility is at 32%. In contrast, actual trailing twelve-month volatility, based on the last 250 trading days along with today’s price of $214.43, is calculated to be 27%. For additional put and call options contract ideas worth considering, visit StockOptionsChannel.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.