DailyPlay – Opening Trade (AMZN) – November 13, 2024

AMZN Bullish Opening Trade Signal

Investment Rationale

Amazon.com Inc. (AMZN) recently reported a strong third-quarter profit of $17.4 billion, surpassing expectations with an 11% operating margin, a notable improvement from last year. The company highlighted momentum in both its retail and Amazon Web Services (AWS) segments. With AI initiatives like ‘Project Amelia’ supporting third-party sellers, AMZN is well-positioned for continued growth. The stock has recently reached new all-time highs, breaking out of its trading range with strong momentum. Having been featured in a speculative Daily Play before earnings, we are now considering a longer-term trade as the holiday season approaches.

AMZN – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 2 AMZN Jan 17 $205/$230 Call Vertical Spreads @ $9.41 Debit per Contract.

Total Risk: This trade has a max risk of $1,882 (2 Contract x $941) based on a hypothetical $100,000 portfolio normally risking 2%. We suggest using 2% of your portfolio value and divide it by $941 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to bounce higher off recent support.

1M/6M Trends: Bullish/Bullish

Relative Strength: 6/10

OptionsPlay Score: 106

Stop Loss: @ $4.71 (50% loss of premium paid)

View AMZN Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Tuesday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View AMZN Trade