A Glimpse into AMZN Options Trading
Investors rejoiced today as Amazon.com Inc (AMZN) unveiled new options for the May 24th expiration. The options market, a colosseum where speculative gladiators wage bets, sprang into action. Stock Options Channel deployed its savvy YieldBoost formula, scavenging the jungle of AMZN options for treasures in the form of a put and call contract that piqued interest.
One YieldBoost gem is the put contract at the $180.00 strike price, flashing a bid of $6.25. Picture this – an investor diving into the fray by selling-to-open this contract would snag the shares at $180.00 if necessitated. Yet, with the premium pocketed, the cost plummets to a tantalizing $173.75. To fervent AMZN enthusiasts, this might be akin to snagging a Picasso at a sidewalk art sale, a risky thrill tempered by the promise of potential gains.
Peering into the Crystal Ball
Breathing life into numbers, this $180.00 strike hails a 2% markdown from the current market price, dancing gleefully as an out-of-the-money candidate by that precise margin. The oracle-eye analytical data forecasts a 61% likelihood of the put contract expiring into oblivion. Stock Options Channel, the market’s watchful sentinel, will meticulously document this probability fluctuation, offering a visual feast in the form of a chart for eager spectators. Should this contract cascade into worthlessness, behold – a princely 3.47% return on the cash gamble or a lofty 25.35% annualized yield – the YieldBoost.
Venturing to the calls domain, a jewel shines at the $185.00 strike. A brisk $8.50 bid sets the stage. Picture this – an investor adorned with AMZN shares at the $183.99 summit, embellished by a “covered call” sale at $185.00. Delight in the prospect of a 5.17% total return, a banquet awaiting at the May 24th expiry. Should the stock ascend even higher, wisdom lies in peering into the archaeological dig of Amazon.com Inc’s trading history and business fundamentals.
Riding High on Possibilities
Picture this – a cover-call odyssey where the $185.00 strike glimmers with a 1% premium from the present market melody, a tantalizing out-of-the-money journey by that fraction. The prophetic analytical data foresees a 48% chance of the covered-call dream fading into nothingness. Stock Options Channel’s vigilance will chronicle this fortune shift, adorning its readers with a numerical narrative on their quest. Should this covered-call saga dissipate into oblivion, envision a 4.62% windfall of additional bounty for the investor or a soaring 33.72% annualized yield – the revered YieldBoost.
The implied volatility serenades the put and call contracts at an enchanting 33%. Meanwhile, the tangible trailing twelve-month volatility, calculated using the last 250 trading day closing values and the current price of $183.99, emerges at a stable 29%. Curious minds seeking more options whispers should pilgrimage towards StockOptionsChannel.com for further enlightenment.
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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.
