Disclaimer:The trades discussed in this blog reflect the author's personal strategies and decisions. These are not financial advice and should not be considered recommendations to buy, sell, or hold any financial instruments. The author is not a licensed financial advisor. Options trading carries significant risk, and readers should perform their own research or consult a qualified financial advisor before making any investment decisions. Past performance does not guarantee future results.
Amazon (AMZN) looks at the beginning of a (potentially) positive cycle, and IV is not low (IV rank above 60%), so I sold a put expiring in a month:
I like that my breakeven is at $197, which is a clear price support for AMZN:
If things go wrong, I may roll it or simply be assigned, as I don't mind owning AMZN shares for the long term.
Gianluca Longinotti is an experienced trader, advisor, and financial analyst with over a decade of professional experience in the banking sector, trading, and investment services.
Gianluca LonginottiFinance Writer - Traders Education