economy
This Amazon options trade takes advantage of the stock's 'sale' price
Amazon is on sale, KKM Financial's Jeff Kilburg says. Here is how an investor can establish a long position and also finance this bullish spread.
TL;DR
- Amazon's stock dropped post-earnings, but revenue reached $213.4 billion in Q4, up 14% year-over-year.
- The company is nearing $1 trillion in annual revenue and is the largest revenue-making company globally.
- CEO Andy Jassy highlighted that more AI capacity could drive additional revenue and accelerate AWS growth.
- A specific risk reversal options trade is detailed: selling the $205 3/20/2026 put and buying the $205 3/20/2026 call.
- This trade allows an investor to collect $300 and potentially profit with unlimited upside above $202, while being prepared to own AMZN at $202 if it closes below that price.