Amazon charts show it's ripe for a bounce back toward record high, says market analyst

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One market strategist lays the case for why Amazon could rally.

-- make it prime to push higher back to the $2,100 mark. That would put it on the path to return to its February record of $2,186.

These bullish indicators have led Gordon and his firm to hold Amazon in their portfolios. He advises that as much as investors can buy the name outright, they can also use options to play the nearly $2,000 stock. Given that implied volatility means the price of options is still elevated, Gordon doesn't want to buy calls. Instead, he said investors could sell the May monthly 1,950-strike put for a credit that would net him about $103. They could then use that money to buy the May monthly 2,100-strike call and still end up with a net credit of about $48.

So in this case, as long as Amazon closes above the $1,895 break-even point on May 15 expiration, Gordon would still make a profit on the trade, even if the best-case scenario would have Amazon closing above $2,100 on that day. Amazon is currently up more than 4% year to date, though it did begin the second quarter down 1% as it followed the broader market lower Wednesday morning.

 

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Whiting Petroleum... 400 dolla stock during Obama... declaring bankruptcy... WINNING..seems like we haven't heard that lately

This is such terrible advice. Who would recommend a buy in this market at this time? Not people trying help, that’s for sure

Not w employees striking for hazard pay. Amazon needs to do better for their workers.

While amazon employees risk their lives for ten bucks an hour.

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