AMZN Calls

Alright, I'm gonna do another one with Amazon(AMZN). AMZN is another one that is always a risk to run away from me, but that volatility also leads to better option pricing.

• Sell to Open: 2 AMZN Jun 18 190.0 Call @ $0.16
• Buy to Open: 2 AMZN Jun 18 200.0 Call @ $0.02

This is more typical of a expiration week trade for me. Often times, I'll add another leg with an out-of-the-money Bull Put Spread(something like a 175/165 strike - ). This type of trade is called an Iron Condor. Since in the worst case scenario, you could still only lose on one side it can be a nice way to bring in some extra premium without adding any margin requirements. The bears seem to have some control at the moment though, so I don't like being exposed to the short side of an overvalued momentum stock like Amazon or First Solar.

The Numbers

• Cash: +$28
• Short Option: -$34
• Long Option: +$2
• Margin: -$2000

Expired!