Earnings Beat – AMZN Trade

Market Context
Good day Insiders,

January ends and with it, Amazon.com reports their earnings. Though we typically have a trade built with as little exposure to the capital with no movement in the stock, AMZN is not your average stock. Volatility sits at a prime 92% giving the expected move of the stock a +/-$87 range. At the time of this update, AMZN is trading at 1713, giving us a downside possibility of 1625 and an upside 1800. Let’s execute our trade within these parameters.

The Trade
We will use the selling of a put spread, the buying of an unbalanced condor, and the buying of the call spread.

Risk & Reward
Our trade using all 3 pieces, will require $8,400 in margin and so long as we get movement we are good to go.