HomeMarket NewsExploring Opportunities: Amazon.com May 3rd Options Overview

Exploring Opportunities: Amazon.com May 3rd Options Overview

Actionable Trade Ideas

always free


Unlocking Potential with May 3rd Expiry Options

As the sun rises on a new trading day, investors in Amazon.com Inc (Symbol: AMZN) are presented with fresh possibilities. Today marks the availability of options expiring on May 3rd, offering a unique snapshot of potential strategies. At Stock Options Channel, we delve deep into the AMZN options chain to unearth noteworthy opportunities for market players.

One intriguing option to consider is the put contract at the $145.00 strike price, currently trading at a bid of 17 cents. By selling-to-open this put contract, an investor commits to acquiring the stock at $145.00, effectively lowering their cost basis to $144.83 per share after factoring in the premium. For those eyeing AMZN shares, this presents a compelling alternative to the current market price of $179.69 per share.

Standing at a discount of approximately 19% from the current trading price, the $145.00 strike rests outside-the-money with a 91% likelihood of expiring worthless. Stock Options Channel closely monitors these odds, providing a roadmap of potential outcomes. Should the contract render valueless, the premium garners a 0.12% return on the cash outlay, or 1.00% annually – a phenomenon we affectionately term the YieldBoost.

Visualizing Market History

A glance at Amazon.com Inc’s trailing twelve-month trading history sets the stage for decision-making, showcasing the $145.00 strike in a historic context:

Loading+chart+β€”+2024+TickerTech.com

Shifting focus to the calls side, the call contract at the $225.00 strike boasts a bid of 6 cents. Purchasing AMZN shares at $179.69 and subsequently selling-to-open this call contract as a β€œcovered call” triggers an obligation to sell at $225.00. With potential total returns reaching 25.25% upon stock call-away by the May 3rd expiry, careful evaluation of historical trading patterns and business fundamentals becomes paramount. The trailing twelve-month trading history for Amazon.com Inc, with the $225.00 strike highlighted in red, sheds light on potential scenarios:

Loading+chart+β€”+2024+TickerTech.com

With a 25% premium over the current trading price, the $225.00 strike ventures out-of-the-money with a 90% probability of expiring worthless. Equipped with analytical insights, Stock Options Channel remains vigilant, tracking odds and publishing detailed charts for informed decision-making. Should the covered call contract lapse into futility, the premium adds a 0.03% bump to investor returns, amounting to 0.28% annually – a concept encapsulated in the YieldBoost.

The put contract example flaunts an implied volatility of 50%, contrasting with the call contract’s 46%. As the realm of volatility unfolds, the actual trailing twelve-month volatility stands at 30%, offering a comprehensive view of market flux. For a plethora of put and call options concepts worth exploring, a visit to StockOptionsChannel.com proves insightful.

nslideshowTop YieldBoost Calls of the Nasdaq 100 Β»

Dive Deeper into Market Insights:

Β• ANET Historical Stock Prices
Β• Institutional Holders of AKAM
Β• GPM Insider Buying

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

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.