DailyPlay – Opening Trade (AMZN) – February 6, 2025

AMZN Bullish Opening Trade Signal

Investment Rationale

Amazon.com, Inc. (AMZN) maintains its e-commerce leadership, driven by advancements in cloud computing and AI. Strong earnings reinforce its market dominance, with Amazon Web Services (AWS) playing a key role in profitability. While other companies dominate AI headlines, Amazon’s steady progress—such as “Project Amelia”—enhances its ecosystem. This AI tool assists third-party sellers in optimizing performance, potentially boosting Amazon’s revenue. Recent earnings reports from cloud providers highlighted capacity challenges, pressuring stock prices, including AMZN’s. However, Amazon’s ability to navigate these issues could set it apart. Investors await its earnings report for further confirmation of its momentum. A highly speculative 0DTE options strategy will be explored, targeting a potential price increase following earnings.

AMZN – Daily

Trade Details

Strategy Details

Strategy: Modified Call Butterfly Spread

Direction: Bullish Modified Call Butterfly Spread

Details: Buy to Open 7 Contracts AMZN Feb 7 $242.50/$255/$260 Call Butterfly @ $2.71 Debit per Contract.

Total Risk: This trade has a max risk of $1,897 (7 Contracts x $271) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $271 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to continue its bullish trajectory.

1M/6M Trends: Bullish/Bullish

Relative Strength: 10/10

OptionsPlay Score: 140

Stop Loss: @ $1.36 (50% loss of premium)

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 Wednesday ‘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