Hi traders from around this planet. I trust you are doing most sensational. I hope you have enjoyed this earnings season so far. When most were anxious and anticipating the worst, many stocks and the general markets kept creeping higher posting all-time highs.
In particular, we have the online retailing giant, Amazon, making a mockery out of stock prices and PE ratios.
Amazon had what I like to call a ‘retest gap’ on its prior earnings. This is when a white candle gaps up. In fact, I’ll be teaching more about gaps in huge upcoming online summit if you want to join. Click here to sign up.
Well, the answer is higher.
The questions are how long and how far.
When earnings came out, AMZN had some wild premarket volatility. Its pre-market high was $788.07. I think that’s going to be target one.
First plan, if AMZN breaks the $772 price range, should continue higher. I love this trend for some credit spreads even though premium is a tad low. IF AMZN pulls back into $756.80 again, I would love to buy some Aug or Sep $760 calls.
My buddy Neils C sold some $690 August week 5 puts. That too is a strategy one could consider if you want to own shares or you have the margin to sell the put. Either way, I’m bullish on AMZN. Use your moving averages to buy the pull backs on this beast and mitigate risk. Hopefully she continues higher! And if not, you can rest assured, AMZN will always give us other opportunities to do just so.
Until next time ~ Jerremy Alexander Newsome CEO and dude with the best beard at Real Life Trading