Amazon (AMZN) – Bearish Options Action Trade for Jan 28th, 2019

On Friday’s Options Action, the crew analyzed the performance of Amazon. AMZNWealth Strength IndexAMZN is Extremely Flat and trending Up was one of the best performing stocks in the tech sector but lost over a third of its value during last year’s selloff. Coupled with a retracement back to a major resistance level, and earnings next week, provides a catalyst for a move lower. Expecting AMZNWealth Strength IndexAMZN is Extremely Flat and trending Up to trade lower on earnings, Michael Khouw suggests buying a Feb 1680/1670 Put Vertical for a $4.80 Debit. As of Friday’s close, these puts were trading at a $5.30 Debit.

We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: AMZNWealth Strength IndexAMZN is Extremely Flat and trending Up Options Action Video

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