Amazon Sees Heaviest Options Trading Volume in Two Months
$Amazon(AMZN.US$ is seeing the heaviest volume in options trading in at least two months just hours before the tech giant reports earnings.
As of 3:21 p.m. in New York Tuesday, 979,210 options contracts changed hands, with almost two-thirds of the trades involving calls that give the holder the right to buy Amazon shares at a specified strike price. That gave Amazon the second-most traded options, behind $Tesla(TSLA.US$, which has a total volume of 1.83 million contracts.
The biggest volume of calls involves contracts that give the holders the right to buy the stock at $200 each. That strike price is more than $20 above its current price of $179.46.
As of 3:21 p.m. in New York Tuesday, 979,210 options contracts changed hands, with almost two-thirds of the trades involving calls that give the holder the right to buy Amazon shares at a specified strike price. That gave Amazon the second-most traded options, behind $Tesla(TSLA.US$, which has a total volume of 1.83 million contracts.
The biggest volume of calls involves contracts that give the holders the right to buy the stock at $200 each. That strike price is more than $20 above its current price of $179.46.
Investors are looking for clues whether Amazon is able to grow its market share in the cloud-computing business after its rival $Microsoft(MSFT.US$ and $Alphabet-A(GOOGL.US$ reported gains.
Amazon Web Services may need to deliver growth of about 15% to impress the market, Barron's reported, citing Mizuho analyst Jordan Klein.
Volume on call options that give the holder the right to buy Amazon shares at $200 each by Friday climbed to more than 39,000, from 20,440 yesterday. The price of such contract dipped about 5.8% to $1.30. The decline tracks the 0.9% drop in the stock price to $179.33.
Disclaimer: Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy.
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Former editor at Bloomberg, then Lazard Asset Management. Posts aren’t investment advice. Views are just mine.
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