Buying puts is also a fine way to profit from a nice hefty revaluation, which seems to be happening as I write this. The premiums are large, though, so writing calls seems to be a good alternative. If the idea continues to be right, you'll be fine either way.
It's funny that folks here are so universally down on AMZN (at this price) that all we have left to argue about is HOW we should profit from a correction. ;-)
Well, we crashed down almost 4 straight points on 1/2 million shares in one hour or so.....I would say that was all selling volume from some major holders of the stock taking profits...noone seems to be able to get stock to short so I would guess the only buyers on the way down were the shorts, and the selling came from long positions.....soon some shares will become available, 2-3 days....I expect there to be another wave of selling on the close....depending on how much we could easily hit 58 1/2 support today..................;^)
are you kidding? if you write calls you only get the call price as of NOW. You can not take the advantage of potential compounding effect of the intrinsic value at the future price (say $40 or $30). That's another $20~$30 bucks of extra cash on top of the time value+some premium you pay now.
go naked, buy puts..if you are so worried, then buy deep in the money puts. I loaded up with more $60 and $55 puts 2 days ago.