Despite the market selling off, there was an unusual amount of options activity in Amazon
(AMZN). The online retail giant crushed earnings and the stock was actually up over 7% on
a day when most major stock indices were down 2%. The selloff was due to fear over the
coronavirus and what impact it may have on the global economy.
AMZN's earnings were so good, it trumped any negative impact from broad market selling.
A trader made a covered call trade in AMZN that allows about 30 points of upside potential
in the share price but also brought in $2.7 million in premiums from the short calls. It's a
moderately bullish trade on the stock with about a 4% yield over 3 months.
From the heat of Arizona, a quiet 21-year options trader has discovered how someone with zero trading experience can turn just $500 into potentially thousands (or more). It flies in the face of every options ‘guru’ out there. He calls it the “fastest way to get rich.”