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.
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.
There were more people shorting it but they went broke. Today some more will be getting their margin call.
You are generous. The book value is $25.12 but it isn't even worth that based on earnings.
If your 401K won't allow you to trade options AMZN is not for you. Too much risk and not enough reward. Selling weekly options is the only way to make a sure income from AMZN.