Just before the quarterly reports speculation runs wild and the price of options goes way up for both calls and puts. It is an almost irresistible temptation to speculators much like the big payoffs in Las Vegas. Can we really blame Bezos etal for cashing in?
10,000 call options and 11,000 puts at the $375 level will expire worthless in a little over an hour from now. By holding the price of AMZN at 385 all week they were able to sell these options at more than $10 each to speculators that had no idea they were being robbed. It may not be legal but it is definitely profitable.
The institutions that hold 80% of AMZN shares are like cats playing with the 20% mice. They move NFLX up $70 so they can sell worthless AMZN weekly options at fabulous prices. The 20% think they are getting away rich then BAM they are devoured by the 80% cats next Friday. This mouse is staying away this time.
Amazon is much like our government; growing big on the backs of the taxpayers. Amazon is doing it on the backs of the stockholders. Will Amazon end up owing 19 Trillion dollars? Probably not, but it already owes the stockholders 177 Billion and is making little progress in paying that debt..
I'm not telling you what to do but I suggest you look at the open contracts for 4/24 before you get in too deep.
Both of those make money; AMZN does not. Amazon's 180B Cap is 10 times what it should be. JMHO
I think the same crooks manipulate both of these stocks but I wouldn't try to outguess them.
Q-1 results will be announced after the close Thursday. I am waiting with cash until Friday and would rather lose a little gain than take the risk.
I got the "always" kicked out of me last quarter so I am staying in cash until next Friday when I will know for sure which way we are going to go. I will lose out on some profit but have a much lower risk.
I think they re already trying but the manipulators are fighting a rise in price before the close today. There are too many calls that would be "in the money" if AMZN moves up.
Good point. It is too late to take advantage of the $60+ run-up on NFLX but AMZN doesn't report until next Thursday after the close.
I note that you also follow NFLX. Can you explain why the charts of AMZN and NFLX seem to follow a similar pattern? NFLX being very profitable and AMZN not.
You have to go to the link to see what he means but, to me, it means that holding puts going into the Q-1 report will not be a good idea.
I think that you are right that a 10 for 1 stock split would be done before AMZN falls to a more logical level.
It was $286.82 two weeks before but had a run-up much like this one and then a minor pull back from $312 to $303 the week before the announcement. However, NFLX has a very similar chart pattern to AMZN and right now it is moving up much more than AMZN. I believe they report a day or two before AMZN.