This looks like a potentially successful earnings play.
It works because the vix is on 30 already, and AMZN is reporting earnings, so increasing stock volatility even more. Its a put 2-1 ratio spread, for a net credit of 15$ (earlier in the day when amzn was down 50$ was even more profitable).
Statistically it has a probability of any profit of 92%, so quite good I would say, and you’re clear a long as AMZN stays above 2400$, or drops less than 17%, and AMZN is already >20% off all time highs (ATH).
What do you think of the trade? Any other earnings trade ideas? Let me know in the comments.
Looks to be an interesting week. Subscribe to get these posts directly to your inbox!