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.
Last week it went $36.37 above the opening price for the week. This week it has only gone up $13.35 and seems to have stalled at around $670, about $12 above the opening price for the week. The smallest up move in six weeks.
office depot earns about the same per share as Amazon but their shares only cost $7.73. What makes the difference? POTENTIAL AND HYPE!!
Just to see who is "stupid" I reviewed Novembers back to 1997 and found 6 downs and 8 ups and 4 where the high for November 1st was less than a dollar from the high for December 1st. However, the past 5 years it has been up 80% of the years (4 to 1). So far this year we are down from the "all time high" of $662.26 where we started this November. karianne, I think it is too soon to use the "stupid" label.
The government (Owned by the billionaires) set up the SEC to protect us from fraud. Don't you feel safe that they are there to protect us from the same billionaires that Owen Amazon???
That is what I have been saying for the past 20 years as it moved from $6 a share to $660 a share. Now I am going with calls instead of puts so it will very likely plunge.
That depends on what P/E you want to use (all of them meaningless).
Trailing P/E = 944
Forward P/E = 117
Projected P/E in 5 years = 4 (according to Reuters).
The FED was started in 1913 by a group of the richest families in America. They were given power to print counterfeit money and loan it to the USA. They have never been audited but the whole thing is unconstitutional so what good would an audit do? Even Donald Trump will not be able to fix this problem.