Amazon stock draws a lot of investors. Over the past 12 months the stock has risen 50% and presently looks like it might want to try to challenge the most recent all-time high. The stock has 4 support levels at present. Two are very strong. The first support level is at $260 and the second at $285. The third level at $345 and the fourth at $390 have limited support although the $345 is better support than the $390. The option premiums are excellent as the stock tends to fluctuate throughout the day. On a day like today (March 19 2014) for example, put premiums were excellent as the stock ranged from $369.42 to a high of $379 for a range of just less than $10. Even Apple Stock today ranged just from a low of $529 to a high of $536.24 or slight more than $7.00 so you can see just how volatile Amazon Stock can be. This also makes the stock a prime candidate for put and call credit spreads at varying times throughout the year.
Amazon Stock 12 Month Daily Chart
Put Credit Spreads Investor Questions
The questions tonight are from an investor wondering about doing put credit spreads in Amazon Stock. I can see why. Done properly, particularly if done around support levels, Amazon stock would provide exceptional returns. Put credit spreads can be a powerful profit and income generating strategy and Amazon Stock certainly looks like a decent trade for investors to possibly consider for this strategy. This is a strategy discussion article for FullyInformed Members. Members can can login directly through this link to read the 12 trade ideas reviewed before the markets open on March 19 2014. Members can also sign in to the full members site here. Non-members can join here or read the benefits of being a member.
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