Notes: I like this trade because I think Amazon is in a stall period and if I make money on the front month when it expires, I get a cheap ITM Call, if I want to hold on to the back month, on a stock that has shown impressive growth.
Associate Jim’s Trade
Trade: Buying 9 MON Oct12 92.50-97.50 Call spread for $1.05
Risk: $105 per 1 lot
Reward: $395 per 1 lot
Notes: Bullish trade ahead of earnings on Wednesday, stock rallied 3 out of the last 4 earnings. I expect the stock to rally after earnings and I think this trade has a good risk vs. reward profile.
Alex Kalish has a masters degree in economics from Suffolk U
Jim Ramelli has a B.S. in Finance from UIUC