Amazing AMZN
Published on April 25, 2007
Amazing AMZN
You might have already noticed by now, AMZN seems to be the darling of the market. Up over $10, wow, what a rally in Amazon shares. However, precaution is needed.
There is huge amount of option trading in AMZN shares. Check out the detailed optionchain and see for May 52.5 Puts, over 29K (as of this writing) have traded vs open interest of only 20!!! For May 50 puts the ratio is roughly 14times.
The picture gets interesting, Jun 55 calls, over 12K contracts vs open interest of 10!!
Enjoy trading amazing amazon, resistance around 55-56 area.
I dont think looking at previous oi when a stock moves 25% means a thing.
What did you expect?
You have to go back a few years, but check out the weekly chart starting Sept 2004 for AMZN. You can draw a trend line on the highs from Sept 04, Jan 05, Dec 05 and to today’s high. It’ll be interesting to see if AMZN can break that line with its latest news.