DailyPlay – Opening Trade (AMZN) & Closing Trade (LOW) – August 15, 2025

Closing Trade

• LOW – 50% gain: Buy to Close 6 Contracts (or 100% of your Contracts) Sep 12 $235/$230 Put Vertical Spreads @ $0.65 Debit. DailyPlay Portfolio:  By Closing 6 Contracts, we will be paying $390. We initially opened these 6 contracts on Aug 12 @ $1.31 Credit. Our gain, therefore, is $396.

AMZN Bullish Opening Trade Signal

Investment Rationale

Investment Thesis
Amazon (AMZN) continues to show strong upside momentum supported by both technical resilience and robust fundamental positioning. The company’s ongoing expansion into AI-driven services, coupled with its leadership in e-commerce and cloud infrastructure, positions it to outperform in the coming quarters. While valuations are elevated relative to peers, Amazon’s superior growth profile and operational leverage justify the premium. With the stock recently reclaiming key resistance levels, a bullish stance remains compelling heading into late Q3 and early Q4.

Technical Analysis
Price action in AMZN has accelerated, with the stock breaking above prior highs and holding firmly above its 20-day, 50-day, and 200-day moving averages—clear confirmation of sustained bullish control. The rising 200-day MA remains well below current levels, underscoring the strength of the longer-term uptrend. RSI is hovering near 69, reflecting strong momentum without yet signaling overbought extremes. The recent breakout also filled the August 1st gap, adding further technical conviction. The next key hurdle is the recent high just above $236; a decisive breakout there could set the stage for a sustained move toward the $260 target zone if momentum persists.

Fundamental Analysis:
Amazon’s valuation premium is underpinned by earnings growth acceleration, cloud market dominance, and strategic investments in AI. The company’s above-average profitability and revenue expansion offer a competitive advantage, even in a higher-rate environment.

• Forward PE Ratio: 35.95x vs. Industry Median 23.35x
• Expected EPS Growth: 16.37% vs. Industry Median 7.18%
• Expected Revenue Growth: 9.48% vs. Industry Median 3.75%
• Net Margins: 10.54% vs. Industry Median 6.55%

Options Trade
Consider selling the AMZN Sep 19, 2025 230/220 Put Vertical for a $3.27 credit. This trade risks $673 to make a maximum profit of $327, offering a 48.6% return on risk if AMZN remains above $230 at expiration. Structuring it as a short put spread limits downside exposure while still benefiting from time decay and the underlying bullish trend.

AMZN – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 2 AMZN Sep 19 $230/$220 Put Vertical Spreads @ $3.27 Credit per Contract.

Total Risk: This trade has a max risk of $1,346 (2 Contracts x $673) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $673 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to continue higher over the duration of this trade.

1M/6M Trends: Bullish/Bullish

Relative Strength: 5/10

OptionsPlay Score: 88

Stop Loss: @ $6.54 (100% loss to value 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 Thursday’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