Option Plays - Page 9

Sold my WFMI calls today.

Not worth waiting. The price is decaying to fast if compared to its peers. I rather stay on cash. Markets look shaky at times and its best to sit it out and then get back in.

Sitting near 80% cash.

I have two calls open and a put at the moment.

Calls:
BG 08
DIS 08
NVDA 07
Puts:
AMZN 07

Your completely right.

I bought some more puts today on AMZN at the same strike price that I bought them earlier. Im averaging down my purchase price and will thefore increase my profit on the swing trade later on.

People have been asking me what puts I bought today on AMZN and what my current position is .

Earlier I got in the Jul 55 puts. The stock has been edging a bit higher since then so I then decided to buy more puts at 55 as to average down(today I bought those extra puts)). I also bought the 62.50, and 70's today so I am essentially creating a bear spread.

Below is thes summary of my puts on AMZN and the price that I am in at:

55- Price- $1.10
62.50- Price- $3.30
70- Price- $7.90

Its a risky trade but with a likely market correction coming and a overvalued stock price if comapred to its own growth(organic/non-organic) and peers the bet seems to be safe. To many people would view this as being obvious and it is but once themarket corrects this stock should head to at least its fair value range near $57 or so.

Looking to buy more puts on AMZN at the same strike prices that are mentioned above.

I'm averging down as much as possible. Once the stock goes my way I will sell, take profits and take the highway. .

Once the move has been compelted I will post the new cost prices.

I bought more puts on AMZN as to average down asmentioned earlier.

55 bought more at $.40 therefore I'm averaged at $.75

62.50 bought more at $1.40 I'm averaged at $2.15

70 bought more at $4.00 I'm averaged at $5.50

Excellent trades.

Yep.

So far the stock has been on a tear and like you said its best to buy when its heading down to really support the weak cause.

I'm not really worry becuase I'm two months out and I think we will have a small dip somewhere betwen these two months which will hit AMZN a bit sending it to its fairvalue range near $57.

July.

But now that I look at the stock market I should have gone to October.

The NASDAQ is usually weak during the summer so that is hwy I went and bought the July instead of October.

Seasonally October is when the NASDAQ begins to heat up again for the months of November-Januray which are usually the strongest.