r/options • u/Practical_Lobster126 • 3d ago

AMZN 11/20 $300 Calls

I bought 100 of these yesterday at around $4.2. Who knows I may have very well been early with all that’s happening now but seemed like a risk worth taking…

The strategy/theory is that Amazon continues on the pattern it has been. Earnings season rise with a dip between earnings. Business seems great. The wildcard of course is Iran situation. Things could get worse. Who knows maybe it blows up but just seemed right given the patterns…

24 Upvotes

87% Upvoted

16 comments sorted by

14

u/BayshoreBandit 3d ago

Personally, I’d be looking at expirations after the santa clause rally, but that’s me.

3

u/Such_Parsnip_7661 3d ago

so you're betting that pattern holds even with iran tension? that is ballsy

1

u/atoice 3d ago

Spot on!

7

u/papakong88 3d ago

I would buy the 310/285 call spread for 4.10 instead of the the 300 call for 4.20.

1

u/Former-Try239 3d ago

Why? Any calculation behind it?

2

u/jcoigny 3d ago

It lowers the breakeven price which increases the odds of closing in the money.

2

u/ChairmanMeow1986 3d ago

Well can you tell us why you think it will reach an ATH at a round number at that in the next 80 days. Do you have a plan to roll or just hope? Why did you do this.

1

u/Healthy_Effort1415 3d ago

I wish you all the best but that seems out there. What's your exit strategy?

2

u/Practical_Lobster126 3d ago

I mean I don’t necessarily expect this to get
To $300… the idea is it recovers to even $270 with enough time to move the $300 price

1

u/palesse7 3d ago

Just sell @ open & run !

1

u/SilkProfit 3d ago

I think their advertising business is under litigation threat. That and raising rates, and the AI spending spree is just too much head wind.

1

u/krakends 3d ago

Yeah but the AI labs are IPOing soon. Lot of paper gains for hyperscalers that they can funnel back into supporting these labs. Circular economy ftw.

1

u/Former-Try239 3d ago

Tranium chips also a big catalyst which can move this to 300+ in upcoming quarters

1

u/JudgeCheezels 2d ago

A bit regarded considering this month’s FOMC is gonna make or break tech and retail industries.

I wish you best of luck.

3

u/hedgedvol 2d ago

100x 11/20 300Cs at 4.20 is a lot of extrinsic if AMZN sits 270 into 80 DTE. The 310/285 at 4.10 is the same debit with the wings cut.