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Friday, April 26, 2019

Options trade: Amazon (AMZN) short put option (EARNINGS PLAY)

Thu. 4/25/2019 (10:25:28 am, PT)

sell short -1 April 26, 2019  $1810 put at $4.60

Facts:

  • earnings announcement after the Closing Bell today (4/25)
  • AMZN was trading around $1910.18 (I went $100 out-of-the-money)
  • 11.80 delta (88.20% probability of success)
  • option premiums are VERY attractive right before earnings announcements, so you can go further OTM
  • "expected move" ("market maker move") was plus/minus $67 post-earnings


Fri. 4/26/2019 (6:30:00 am, PT)

buy (to close) $1810 put option at $0.01

PROFIT:  $459 (1 day)

FREE LESSONS ON HOW TO SELL PUT OPTIONS!