Thursday, June 14, 2012

July $AMZN Bear Call Spreads On Today's Rumor

7/19/12
Closing down both sides of this trade.  Total of $500 profit on $2500 margin for 20% return in a little over a month.

Trade:
BTC AMZN July 12 215/210 bull put spreads for ($0.14-$0.07) x 100 x 5 lots = $35 paid vs. $390 received = $355 profit
BTC AMZN July 12 235/240 bear call spreads for ($0.03-$0.01) x 100 x 5 lots = $10 paid vs. $575 received = $565 profit

6/27/12
My original thesis isn't playing out as expected.  Market hasn't been very strong, but this name has been showing relative strength.  Not going to fight it.  Rolling up the strikes in the bear call spread while selling put spreads to pay for the roll.  Not adding any extra margin requirements.  Roughly 75% probability of win on both sides of the condor.

Trade:
BTC AMZN July 12 230/235 bear call spreads for ($4.44-$2.61) x 100 x 5 lots = $915 paid vs. $495 received = $420 loss
Sold AMZN July 12 215/210 bull put spreads for ($2.29-$1.51) x 100 x 5 lots = $390 premium received
Sold AMZN July 12 235/240 bear call spreads for ($2.62-$1.47) x 100 x 5 lots = $575 premium received


6/14/12
Amazon (AMZN) has been putting in lower lows since the post ER pop in late April.  Continues to bump up against the descending trendline.  Used today's rumor pop to short this name via bear call spreads.

Was originally looking at the 235 level, then decided to come down to 230.  Still above the Bollinger band, but also some resistance there.  Also nearly 3 full ATRs away.  OBV has been trending down, indicating we could see more selling.  Stochastics appear to be flirting with overbought.  Current probability of max profit is 76%.

Trade:
Sold AMZN July 12 230/235 bear call spreads for ($2.85-$1.86) x 100 x 5 lots = $495 premium received


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