Amazon.com Stock (AMZN) dipped lower today by 1.65% which helped setup this trade in the stock. For this trade I am out to May 16, just two weeks away, and sold the $17250 put strike while buying the $144 for long puts. This formed a $28.50 credit put spread returning 2.2% with just over 7% protection. Considering that most dips in the stock are around 1.5%, I think the stock should stay above the put strike I sold today.
Amazon.com Stock (AMZN)
TRADE SUMMARY: Credit Put Spread
Date: Mon May 5 2025
Equity: Amazon.com Stock (AMZN)
Approx Price At Entry: $186.70
Expiry: May 16 2025
Next Earnings: July 30 2025
Potential Profit: $384.00
Potential Return: 2.2%
Approx. Percent of Protection: 7.6%
TRADE DETAILS:
Short Puts: Sold 6 put contracts for May 16 2025 expiry at the $172.50 put strike for an average of $0.72 = $432.00
Long Puts: Bought 6 put contracts for May 16 2025 expiry at the $144.00 put strike for $0.08 = ($48.00)
Spread Details: This forms a $28.50 credit put spread returning 2.2% earning $384.00 if held to expiry on May 16 2025
Buy To Close Early Offer: I am offering $0.29 to start and will reduce that amount as the trade moves toward expiry on May 16 2025
TRADE STATS:
Put Strike Sold: $172.50
Potential Profit: $384.00
Potential Return: 2.2%
Credit Put Spread Size $28.50
Approx. Percent Of Protection: 7.6%
Equity Would Have To Fall To Reach Short Put: $14.20
Capital In Use: $17,100.00
Disclaimer: No commissions are taken into account in these trades. Remember do your own due diligence. I am not a financial planner or advisor and have no financial accreditations. Nothing you read are recommendations. FullyInformed.com is for educational and entertainment purposes only.
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