I think you need to wait until the end of the day to crow about technical breakdowns. We shall see.
Even if fundamentals haven't changed, the perception of those fundamentals has, as the market grows more and more intolerant of sky high PEs. And the promise of big profits in the future is growing old. AMZN is in a jam now. If they change their strategy and decide to focus on making money, then the growth will slow and stock will fall. If they stick with their same strategy, at some point the market realizes they may never be able to justify their market cap.
Might hold water in a bull market, but this market has been ugly and is not finished pulling back. It rallied back to slightly higher today and AMZN was still off $12. It seems unlikely to hold tomorrow, as oil is pulling back and futures are lower. If the market tires of all the empty earnings promises, which is very possible in market retreat, things could get very ugly. AMZN could easily be under $500 in a couple weeks. If you're long, consider at least selling some out of the money covered calls.
I'm short FANG and AMZN via puts. Market is becoming less forgiving of high PEs. And oil will continue lower IMO.
In a bull market, AMZN is great because growth is key. In a bear market, value matter much more and AMZN is one of the worst stocks to own. If the market opens down significantly, AMZN could go into a free fall and hit $500 by the end of the week, if not sooner.
I have been getting killed on FANG puts but things looking much better suddenly. Hopefully AAL keep chugging higher to $40ish.
AAL sets records with earnings and is lower premarket.
Congratulations on a great trade. Avoid all or nothing thinking. We should get a strong open in the morning, with a good chance you can get $3 for your calls. You have $800 invested, sell 10 calls early for at least $2,000, probably more and let the rest ride. I would try to sell by end of the day, as there is always a risk of a pullback after a sharp move higher, and holding into Friday with options expiring that same day is risky. The after-hours news about lenders relaxing their terms should move the stock higher. I suggest you stay glued to the screen in the morning and don't sell until you see a hint of momo slowing, then be quick in taking at least some of your profit. Good luck.
They said board and management have taken risks that put the company at a 46% premium to its current price (or something very close to that).
but could easily hit $40 this week. The combination of shorts who got greedy and stayed too long now having to cover, and momo buying could send VRX into the $50's next week. Not saying it will, but is definitely possible.
I believe it is a rally within a bear market and am shorting any big moves higher on various stocks. Nice to see AAL moving higher, as I'm still long here.
So are you still holding or did you sell some? I bought GOOG at $674 today and sold a GOOG Feb12 $685 call for $10. Also bought VXX Feb19 $29 puts when the market was tanking. The AMZN buy seems very risky to me, even hoping for a bounce, as it is still overvalued. I bought AMZN Feb $530 puts about a week ago for $3 and thought I was brilliant when I sold one for $6 the next day and the other for $20 a few days later. Could have sold them for $50 today had I held.
July $630 calls are getting cheaper because AMZN is not going back to $630. It will likely be sub $500 in the near future. The market has grown tired of patiently waiting for big profits and is now looking at PE, which is very bad for AMZN. This has happened throughout the market with stocks that were pricey because of promised future earnings, so the only surprise is that AMZN hasn't been taken down sooner. Just for fun a bought a couple AMZN Feb 19 $530 puts last Friday for $3. Sold one Monday for $6 and the other yesterday for $20. Wishing I had bought a large position, but IMO buying puts still a good idea.
think in this market we can continue higher from here? Cramer's article was very annoying. Hope it isn't true.
Possible. In this market you can short just about anything that has a sharp move higher and make money. Would not surprise me to see CMG at $400 in a couple weeks or less.
Thanks uncle! You were right about my timing on my recent AAL buy. Hope I become even more wrong to have sold some covered calls on recent buy, so I can get back into selling covered calls in the $40's. Want to take a shot on predicting what the market will do tomorrow. Another day like today would really have shorts running for the hills, but I don't think we will be that lucky, so was selling off some long positions today. I recently bought some cheap out of the money AAL calls expiring this week just in case AAL continues higher.
Timing was right on. Got a quick $4 bounce. The $550 calls expiring Friday moved up about 50% in a few minutes.
Haha. That would be a dream. If we see $720 at some point during the day I would be very happy.