If you are betting on that, only bet what you can afford to lose. To "Da Boyz on Wall St" Amazon is a cash cow that they milk with options every week. They don't care if Amazon ever makes a profit.
I would sell 9/2 $500 calls and next week buy them back on the dip that is almost certain. You can get $2,000 per contract and $600 of that is time premium that will decay in 7 days to zero.
It is a bit of a scam but here is the way it works. Institutions own 80% of the shares and, for most of them, there investment is below zero. This is because they sell covered calls every week and those calls always expire worthless. By keeping the stock price fluctuating wildly the premiums on the options are kept high so they make millions every week. It doesn't matter to them that Amazon is not profitable.
I don't understand the "same store sales". I thought Amazon's whole idea was to put stores out of business.
Thanks for the explanation. I thought the institutions that own 80% of AMZN shares were running it up so they could sell calls at high prices.
A run-up like this is not unusual for AMZN. Those who control the price of the stock do it in order to get high prices when they sell the options. JMHO
You can buy 9/11 $535 calls for $2.80 and, if we get to $533.32 you will almost break even. Far better than most of your trades.
Don't think sounds like a great strategy for investing in Amazon options. If they took your advice when you posted, they would have made $300 on each $480 call option for this weeks expiration.
Don't worry, the SEC is making sure nobody cheats. You do trust the guberment don't you?
Go back to selling covered calls but pick options that are above the top Bollinger Band and there is only a 10% chance they will e exercised. Even then you will make a nice profit on the sale and will likely get back in at a lower price. JMHA
It looks like lots of holders are anxious to get out. It is interesting that puts have a higher premium than calls for next week but the 2017 leap calls have a higher premium than puts. So it looks like the long termers are still optimistic.
I think you are right. AMZN is still over $150 above where it was at the beginning of this year; and for what reason? It still has only made money on weekly options for those who own the stock.
You call yourself clearsighted and yet you cannot see that those who hold Amazon shares are making millions every week selling overpriced options on what you call a "no earnings ever stock". You look at those stockholder as idiots, but they are wiser than you think. It is those who gamble on the options that are idiots.
Generally the crazy reason is supply and demand even though the demand might be crazy. On September 16th the fed will announce the interest rate and the guess is a 20% chance it will not be increased. That often gives a little bump up to AMZN.