You sold $85 puts for $14.5 - must have been back in Feb when the stock was in the $70s. Hope they expire this month - after the earnings report you'll probably wish you could get $85 for them.
Smart move would be to cover them and walk away with a nice profit. That's a nice trade by the way - gutsy call.
Who is going to stay locked up in the house during the summer on the internet? The frenzy will die out. The hits will slow
down. The posts on this board will dwindle, as everyone takes to the outdoors and goes back into the warmth of the real world.
AMZN pace will slow, the competition will suck away business and reality will come back to stock prices of all stocks , not just
AMZN........watch out! the circuit breakers have been removed! the DOW can now fall over 2,000 points in one day, and the FED's next move will
be to raise interest rates. If you think you have witnessed 'momentum' on the way up, you ain't seen nothin' yet. Wait 'till
you see what 'momentum' can do on the way down.....Yikes!......I am off to play in the warm evening breeze....best of luck to
I am gland to hear they are a few people the follow the great Black-Scholes Nobel Prize theory of option prices. Incidently, my strike price was $85 & I sold the puts for $14.5. The more prime madona's worship Black-Scholes, the better I sleep at night.
Actually, the premium on the puts isn't that expensive for the volatility of this stock. Maybe a little high, but future volatility is predicted to be large = high premiums. I use the Black-Scholes model - on a spreadsheet - to look at premiums before I buy. But thanks for the input. I'd hate to see you have to pay $90/sh when the stock is at $30 and your puts are exercised......
There was an interesting article in today's LA times. As the number of web pages advances quickly to 200 million, any business that publishes or sells (or distributes) any kind of information COULD use AMZN as a central fulfilment link for orders.
Imagine the millions of one person+ desktop publishers out there using AMZN to process their orders. Geocities' GEOSHOPS is trying to position themselves as a processor.
Just a thought about how envious a postion AMZN is in. The most KNOWN E' company between those who want info and those who are distributing it. If they could only make a buck before the next century!
I bought two books from Amazon.com:
"The Big Lie" by Robertson &
"The Judas Economy" by Wolman and Colamosca
My local Barnes & Nobel did not have these books, but presumanly I could have ordered them online from them. However, I was very pleased from the service and products I recieved, so I plan to buy more books from Amazon in the furture. Yes, the stock price for AMZN is too high because of the active short covering. Incidently, this could go on for months like it did with Presstek. But Amazon is a good company to interact with, and all this negative stuff is mostly crocodile tears!
I love selling puts to you people, because you pay too much for them!
>people was asked, how many had bought a book from Amazon.
>Almost every hand in the room went up (hundreds of hands).
But they did not ask how many people are planning to continue to do so.
I am personally bought some books at Amazon too just for experimet, was not terribly impressed with this method and would not do it again. The same may be applicable to many so-called new Amazon customers - they may not be long-time asset.
jk_oblong said 'Barnes and Noble has a better web page then Amazon.'
It's not about what the web page looks like, it's about getting traffic to the site and getting people to actually buy. At a recent retailer's conference, a large room of people was asked, how many had bought a book from Amazon. Almost every hand in the room went up (hundreds of hands). Then they were asked, how many had bought from the Barnes & Noble web site. Two people raised their hands.
A lot of people seem to think that all a competitor has to do is slap up a web page and they're off and running. It's just not that easy or simple. What Amazon has done is establish their brand name as the leading brand on the web of any retailers. Next they will move into videotapes and music CDs. After that, probably software. After that, whatever they want. And they will have what is needed most in web commerce, traffic to their site and brand name recognition.
BTW, Amazon spent a LOT of money to create this awareness of their brand and web location. Before going public, the spent a couple million dollars on PR. Almost every article in every paper or magazine that talked about the web mentioned Amazon.com as a success story.
Caveat: I'm commenting on the issue of competition to Amazon, not trying to justify their astronomical valuation.
I believe a previous message listed a web page where you can get quotes on puts etc. I go through my broker's web page to
get updates. The American edition of the WSJ lists them there as well. Good luck and remember - options can be tricky to make
money with. I would advise finding a book that describes investing strategies with options. As to Amazon, puts are a nice option
since it is difficult to get shares to short and there is a strong possibility for a short squeeze. But, the bigger they get, the
harder they fall - this stuff is an overblown balloon. Barnes and Noble has a better web page then Amazon.