Bull Put Spreads in AMZN

[Steven Place]

The stock has seen really nice price action after its earnings report, and at the beginning of March has started to pullback.

Can it head lower? Yeah. Will it completely wipe out the gains it made from earnings? Probably not.

Odds are, the bearish case here is for the stock to settle down into a range. That means if we see any more selling, I want to put on bull put spreads.

Here’s the trade:

Sell to open AMZN Apr 340/335 bull put spread at 0.80 HALF SIZE

ADD to the trade at 1.50

OUT of the trade at 0.30 with intent to resell.

Now… the current fill on this spread is at 0.60, so to get this fill you’ll need to see AMZN pull back into the low 360’s.

There’s no need to force the trade here. If you don’t get filled, fine. If AMZN dips a bit more, you’ll have plenty of willing put buyers on the other side of the trade.

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