Amazon Post Split Position

I know these are not normal times for Main Street beats Walls but as I said before these are not normal times for the market. Hopefully soon we will be back to normal and I’ll return to posting trades. With the market as is, I really don’t feel comfortable posting the trades I’m making. I don’t feel they will be beneficial for new traders. However, I did make a trade today you might be interested in. You can see my other trades on my Active Trades page. I post most of them.

On Friday, June 3rd Amazon did a 20:1 split. I normally get into a position before the split with my split strategy but I didn’t like the way Amazon was moving, plus pre-split it was a very expensive stock. As were its options.

This morning Amazon opened at $125.24. I decided to watch the stock for a while to see how it would react to the huge split. Later with the stock at $125 I decided to buy 1 AMZN 1/20/23 $125 Call for $16.50. As I said I don’t like the way Amazon is moving so I went with 1 contract and I went with the Expiration Date of 1/20/23. If I don’t make money with this position I will be very surprised. Even with the condition of the market. $125 is the lowest price for Amazon in years and I feel the price will invite investors who were not able to get in before the split.

Buy to Open 1 AMZN 1/20/23 $125.00 C @ $16.50

If the stock does start to move I will get into more positions. With this crazy market only time will tell.

 

Successful trading,

Steve

The Options Coach