Bought some May $95 puts today. I have to have faith in a rational mkt eventually correcting this mania. When the puts do payoff, it will be large and more than make up for my losses so far. Congrats to all the longs - so far the mo players are winning the battle.
Most value investors know that the action in Amazon is a JOKE and that's exactly why the shorts are getting their clocks cleaned. Nothing will cause a material drop in this grossly overpriced stock as long as the heavy short position (over 3 million shares) gets substantially reduced OR the many insiders who have filed to sell, SELL.
Many internet stocks (earnings or not) have huge momentum. For these companies to generate earnings to support their current price with a reasonable PE every human on earth would have to go on-line and use their product, and we know that won't happen. Despite the negative press from IBD, Barron's, the Online Investor, and the company itself, the momemtum players and short squeezes are running AMZN to the moon and it will keep running.
Buying puts seems to be the rational thing to do BUT this is not a rational stock. Someday, you'll wake up and find Amazon down $20, but that may be next year. Don't try to rationalize this stock because it's irrational. Read the news from the Online Investor yesterday.