Mystery trader bets Amazon could hit a new all-time high after earnings

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As Amazon prepares to deliver its earnings report, one trader is betting that shares of the e-commerce giant are primed for new highs, says options expert Michael Khouw.

That's according to one mystery trader, who on Wednesday bet that shares of the e-commerce giant could jump by at least 4% after its earnings report, Mike Khouw, co-founder and chief strategist at Optimize Advisors, said Wednesday on CNBC'sthat report — set to be released after Thursday's closing bell — to reveal the fruits of Amazon's shift to one-day shipping for Prime members, as well as its annual shopping holiday, Prime Day.

On Wednesday, the mystery buyer put on a trade that was "a purchase of the $2,060/$2,065 call spreads," Khouw said. "Somebody paid just over a buck for a couple hundred of those, and that is going to be profitable if Amazon rises by 4%." "You're able to get quite a lot of leverage on a relatively small move for Amazon of 4% to the upside," Khouw said, noting the trade offers a "payout of about 4 to 1."

 

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OptionsAction What a great trade by the mystery trade. What a joke.

🙁

Wrong

OptionsAction MysteryTrader99

Since when does a $20k bet get a article ?

TRUMP is buying amazon?

what a stupid article. im sorry but so dumb.

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