geegenjar: Are you aware that you can delete a post when you make a boo boo?? I should know; I have made more than my share.
Both have developed great on line stores and will be competition for Amazon. However Bezos is no dummy and saw it coming. That is why Amazon has become #1 in cloud service. The move to open a branch in Detroit was brilliant. The University of Michigan can supply brain power and the low cost of living in depressed Detroit will allow Amazon to pay somewhat lower wages. Amazon may never make a profit but Bezos will never run out of hype.
In the past 8 weeks AMZN has closed at a new all time weekly close 7 times. The one exception (11/13) it was down $17 from the previous week but only because the previous week (11/6) closed up $33 the week after the earnings announcement. Since 6/1/2015 AMZN has only closed the week down 5 times and most of those were under $20.
You do realize the market will close at 1PM today don't you? It looks very likely to close at $675 and you will lose your $6,800 unless you move quick to dump them.
AMZN is 14% above the DMA. 50% above would be $890. Still AMZN should be due for at least a minor drop from $675 to maybe $640 or even $620. Still way above the 50 DMA at $594.
Buy leap puts to insure your investment. They are expensive but, if you buy a high enough strike to cover the cost of the put, you can stop worrying about a sudden drop in price.
Lows for the three weeks since the Q-3 report are $620.55, $640.45, $622.29 so I think I will buy calls just below $630. However, I plan to buy 12/4 expirations after black Friday results are factored in.
Don't count on it. Institutions make a lot of profit from call options that expire worthless if the close is low today. A more likely close is $650.
I presume you know that no doesn't mean the same thing as know. Don't ya just hate English?
Amazon does not "command such a crazy valuation". But as long as crazy people are willing to pay a crazy price, can you blame the sellers for taking their money? Actually it can be a very good investment if handled properly. For every 100 shares owned buy a leap put so you can sell them for more than you paid for them. That will cost about $10,000 but will avoid any loss other than the $10,000. Then every week sell an out of the money covered call when the stock price is high. You will make about $200 a week which will pay for your insurance put about two months before it expires. meanwhile you can also sell a covered put every week when the stock price is low and make another $200 a week of pure profit. 16% profit on a risk free investment is pretty good when compared to a savings account; and you could make even more if AMZN continues up.
AMAG hit $27.90 this morning. It looks like a good investment but I will wait for it to start moving up.