Over 2 Years Ago
3 Min Read
AMZN shares leaped 11% today. Here's what's going on:
Amazon.com Inc (AMZN) is trading 11% higher at $135.145 today. The likely cause:
1. Amazon recently beat Revenue Growth estimates for Q2, whiles its profitability has been butchered by rising input costs.
2. Amazon’s surge drives gains in consumer discretionary ETFs.
3. Amazon stock surges toward biggest monthly gain in 15 years.
Amazon.com Inc has been trading between a 52-week high of $188.11 and a 52-week low of $101.26. The stock has a market cap of $1.37 Trillion.
Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Fire tablets, Fire TV, Amazon Echo, and Alexa are some of the products and services pioneered by Amazon.
As you can imagine, the internet had a few things to say about the price move. Here's a few choice comments from the Reddit Traderverse™:
Quinnteligent - 717 upvotes - source
If AMZN opens at this current price tomorrow the guy is making around 100k and doesn't even know what they're doing.
CanadianWhales-R-Us - 239 upvotes - source
hey man if you want a fully explained answer, it’s says 88% because it’s 88% in gains, added to your original 100% input. it’s nearly doubled already. however you cannot trade options after hours or as a GTEM order. with that being said, the huge beat AMZN had oafter hours is not even priced in, and as soon as options are tradeable tommorow, these will immediately skyrocket like everyone says, unless something tanks the market tommorow (unlikely) you’ve probably made 6 figures. now if you have enough power in you account or depends on how your broker works you can exercise this option, or your broker could for you if you don’t have the $ and give you the difference. since it’s so green. excersising this option will put you into a finished trade that could make any trader jealous. congrats bro, don’t gamble it away! edit: i now see these don’t expire til next week, a lot can happen in a week, IMO sell tommorow and go on a vacay man. fuck excersing them
AssPinata - 128 upvotes - source
I was sitting on the toilet at work looking at my -95% loss on spy puts that were once 20% up figuring out ways to ask my girlfriend if she’d cover rent so I wouldn’t have to max my credit card again. I tossed everything I had left into 2 1dte amzn calls an hour before close. Now I can ask her to cover rent, but with more money left in my portfolio for a larger 1dte next week.
neothedreamer - 88 upvotes - source
Bet AMZN drops some pre-market to like $135 maybe less. There will be shenanigans tomorrow to max pain on options.
Quinnteligent - 82 upvotes - source
He allegedly bought 135 call contracts on AMZN for $88 each with a strike of 130 and expiration of Friday. He basically made the bet that it would be over 130 by Friday after earnings. Think of the strike price ($88) as probability. The less likely something is to happen, the cheaper the bet. This person's bet is risky as hell but they're right so tomorrow their contracts are going to roughly 10x in value.
ninkorn - 64 upvotes - source
God damn, AMZN Q3 Guidance range above estimate. Bezos said fuck your puts
BlakeClass - 44 upvotes - source
So if you want to hear evidence of a trend reversal I guess, AMZN had a consensus adjusted eps of $0.20 last month Then it got adjusted down to $0.12 this month. They just came in at $0.14. The stock is now trading 20% higher than the stock price when the consensus was $0.20
ProcessMeMrHinkie - 40 upvotes - source
If he has the margin in his account he can exercise, if not he needs to close. It's showing $10k because option prices don't change after the bell at 4pm. They won't be updated until 930am tomorrow morning. The stock is showing the real price at $138. The option at open if that holds is a **minimum** $138 - $130 = $8. OP bought at $0.88. Each option cost OP $0.88 x 100 shares/option = $88. Each option would now be worth $8 x 100 shares/option = $800 for a total of $108,000 from a starting price of $11,880. OP can sell to close most of the contracts and then exercise some based on what he wants to do - does he want money or shares? I'd personally take the initial $11,880 (+$35k for taxes - he'll likely need to pay estimated quarterly taxes) out and convert the rest of the gains to shares (about 4 contracts @ $13,088/contract = 400 shares). I'd then sell out of the money (OTM) covered calls the rest of the year for additional gains (like $300-400/week). As other commenter said, price is likely to be greater than $8/option due to gamma squeeze and AMZN likely to pop a bit. Top at the beginning of the market could be close to $130-150k depending on price action of AMZN.
Languyin - 33 upvotes - source
What a day to be balls deep on INTC and short on AMZN.
wattumofficial - 31 upvotes - source
AMZN calls to the moon!
1. Amazon recently beat Revenue Growth estimates for Q2, whiles its profitability has been butchered by rising input costs.
2. Amazon’s surge drives gains in consumer discretionary ETFs.
3. Amazon stock surges toward biggest monthly gain in 15 years.
Amazon.com Inc has been trading between a 52-week high of $188.11 and a 52-week low of $101.26. The stock has a market cap of $1.37 Trillion.
Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Fire tablets, Fire TV, Amazon Echo, and Alexa are some of the products and services pioneered by Amazon.
As you can imagine, the internet had a few things to say about the price move. Here's a few choice comments from the Reddit Traderverse™:
Quinnteligent - 717 upvotes - source
If AMZN opens at this current price tomorrow the guy is making around 100k and doesn't even know what they're doing.
CanadianWhales-R-Us - 239 upvotes - source
hey man if you want a fully explained answer, it’s says 88% because it’s 88% in gains, added to your original 100% input. it’s nearly doubled already. however you cannot trade options after hours or as a GTEM order. with that being said, the huge beat AMZN had oafter hours is not even priced in, and as soon as options are tradeable tommorow, these will immediately skyrocket like everyone says, unless something tanks the market tommorow (unlikely) you’ve probably made 6 figures. now if you have enough power in you account or depends on how your broker works you can exercise this option, or your broker could for you if you don’t have the $ and give you the difference. since it’s so green. excersising this option will put you into a finished trade that could make any trader jealous. congrats bro, don’t gamble it away! edit: i now see these don’t expire til next week, a lot can happen in a week, IMO sell tommorow and go on a vacay man. fuck excersing them
AssPinata - 128 upvotes - source
I was sitting on the toilet at work looking at my -95% loss on spy puts that were once 20% up figuring out ways to ask my girlfriend if she’d cover rent so I wouldn’t have to max my credit card again. I tossed everything I had left into 2 1dte amzn calls an hour before close. Now I can ask her to cover rent, but with more money left in my portfolio for a larger 1dte next week.
neothedreamer - 88 upvotes - source
Bet AMZN drops some pre-market to like $135 maybe less. There will be shenanigans tomorrow to max pain on options.
Quinnteligent - 82 upvotes - source
He allegedly bought 135 call contracts on AMZN for $88 each with a strike of 130 and expiration of Friday. He basically made the bet that it would be over 130 by Friday after earnings. Think of the strike price ($88) as probability. The less likely something is to happen, the cheaper the bet. This person's bet is risky as hell but they're right so tomorrow their contracts are going to roughly 10x in value.
ninkorn - 64 upvotes - source
God damn, AMZN Q3 Guidance range above estimate. Bezos said fuck your puts
BlakeClass - 44 upvotes - source
So if you want to hear evidence of a trend reversal I guess, AMZN had a consensus adjusted eps of $0.20 last month Then it got adjusted down to $0.12 this month. They just came in at $0.14. The stock is now trading 20% higher than the stock price when the consensus was $0.20
ProcessMeMrHinkie - 40 upvotes - source
If he has the margin in his account he can exercise, if not he needs to close. It's showing $10k because option prices don't change after the bell at 4pm. They won't be updated until 930am tomorrow morning. The stock is showing the real price at $138. The option at open if that holds is a **minimum** $138 - $130 = $8. OP bought at $0.88. Each option cost OP $0.88 x 100 shares/option = $88. Each option would now be worth $8 x 100 shares/option = $800 for a total of $108,000 from a starting price of $11,880. OP can sell to close most of the contracts and then exercise some based on what he wants to do - does he want money or shares? I'd personally take the initial $11,880 (+$35k for taxes - he'll likely need to pay estimated quarterly taxes) out and convert the rest of the gains to shares (about 4 contracts @ $13,088/contract = 400 shares). I'd then sell out of the money (OTM) covered calls the rest of the year for additional gains (like $300-400/week). As other commenter said, price is likely to be greater than $8/option due to gamma squeeze and AMZN likely to pop a bit. Top at the beginning of the market could be close to $130-150k depending on price action of AMZN.
Languyin - 33 upvotes - source
What a day to be balls deep on INTC and short on AMZN.
wattumofficial - 31 upvotes - source
AMZN calls to the moon!
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