Amazon (AMZN) Offering Possible 48.15% Return Over the Next 34 Calendar Days

Amazon's most recent trend suggests a bearish bias. One trading opportunity on Amazon is a Bear Call Spread using a strike $3135.00 short call and a strike $3145.00 long call offers a potential 48.15% return on risk over the next 34 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $3135.00 by expiration. The full premium credit of $3.25 would be kept by the premium seller. The risk of $6.75 would be incurred if the stock rose above the $3145.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Amazon is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Amazon is bearish.

The RSI indicator is at 45.28 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


LATEST NEWS for Amazon

Amazon faces class-action lawsuit over eBook pricing
Fri, 15 Jan 2021 02:08:53 +0000
Amazon.com Inc was slapped with a class-action lawsuit on Thursday accusing the e-commerce giant of inflating the prices of ebooks in collusion with some publishers. The lawsuit alleges that Amazon and the five largest U.S. publishers, collectively called the ‘Big Five', agreed to price restraints that cause consumers to overpay for eBooks purchased from them through a retail platform other than Amazon.com. The lawsuit comes a day after Connecticut said it was investigating Amazon for potential anti-competitive behavior in its business selling digital books.

Virgin Galactic Rival Blue Origin Gets ‘Very, Very Close' To Crewed Flight
Thu, 14 Jan 2021 21:31:15 +0000
Blue Origin launched a test flight of its new crew capsule Thursday, a key step before it can launch its first crewed flight.

These Big Stocks Go Both Sides While Others Pick A Side Amid Political Crisis
Thu, 14 Jan 2021 21:01:46 +0000
Boeing said Wednesday it will pause political donations to both parties, but some big stocks are taking a more targeted stance.

‘We’re cash flow neutral’: IMAX CEO on recovery amid pandemic
Thu, 14 Jan 2021 20:43:37 +0000
Yahoo Finance’s Alexis Christoforous and Richard Gelfond, IMAX CEO, discuss the impact of the COVID-19 pandemic on the film industry.

Amazon Makes It Too Hard to Cancel Prime, Groups Tell FTC
Thu, 14 Jan 2021 20:40:40 +0000
(Bloomberg) — A coalition of public interest advocates is asking U.S. regulators to investigate whether Amazon.com Inc. violates consumer protection laws with its process for canceling Prime subscriptions.In a letter to the Federal Trade Commission on Thursday, a group led by Public Citizen said the steps required to cancel Prime “are designed to unfairly and deceptively undermine the will of the consumer,” and may violate FTC rules as well as other consumer protection laws. The letter draws on a complaint by Norway’s consumer protection agency, which on Thursday asked Norwegian regulators to determine whether Amazon violated local law.Amazon makes it “clear and easy” to cancel Prime online, by phone or by opting out of automatic renewal, said a spokesperson for the Seattle-based company. “Customer trust is at the heart of all of our products and services and we strongly disagree with any claim that our cancellation process creates uncertainty,” the spokesperson said in an email. “The information we provide in the online cancellation flow gives a full view of the benefits and services members are canceling.”A spokesperson for the FTC didn’t immediately comment. Prime, which costs $119 a year in the U.S., offers quick shipping, video streaming and other perks, and has been a major catalyst for Amazon’s growth into the world’s largest online retailer.The report by Forbrukerrådet, Norway’s state-backed consumer protection agency, documents how Amazon riddles the process with “dark patterns,” or manipulative techniques, including steps that nestle the choice to leave in between other options to abort the whole process or maintain their membership. The group also produced a video that demonstrates how a user who wants to cancel Prime might accidentally click buttons that actually keep them in the program.While complaints routinely land at the FTC with little action, at least one of the parties involved in Thursday’s letter, the Center for Digital Democracy, has been able to push commissioners in the past. Republican FTC Chairman Joe Simons is also expected to step down, and President-elect Joe Biden could replace him with a Democrat who would likely be open to a broader interpretation of the consumer protection mandate.Amazon’s market power is already the subject of a lengthy congressional antitrust investigation, as well as probes by the FTC and European Commission, among other regulators(Updates with Amazon comment in the third paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

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