Amazon (AMZN) Offering Possible 5.26% Return Over the Next 15 Calendar Days

Amazon's most recent trend suggests a bullish bias. One trading opportunity on Amazon is a Bull Put Spread using a strike $1785.00 short put and a strike $1780.00 long put offers a potential 5.26% return on risk over the next 15 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $1785.00 by expiration. The full premium credit of $0.25 would be kept by the premium seller. The risk of $4.75 would be incurred if the stock dropped below the $1780.00 long put strike price.

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

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

The RSI indicator is at 44.25 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 1-Day Shipping Will Raise the Stakes. UPS and FedEx Stand to Win.
Wed, 04 Sep 2019 09:00:00 +0000
Amazon.com is investing heavily in its own logistics network to make one-day shipping a reality. Counterintuitively, that should help United Parcel Service and FedEx.

As D.C.-area housing market booms, researchers warn 220,000 families could be displaced
Wed, 04 Sep 2019 09:00:00 +0000
Roughly 220,000 families across the D.C. region could be forced to leave their homes in the coming years as housing costs rise, according to a new study of the area’s housing market. Researchers at the Urban Institute found that people living in 296 communities around the region are at risk of displacement, reasoning that households with lower incomes in areas experiencing rapid property value increases will be particularly vulnerable and could soon be priced out of the market. The analysis, released Wednesday and crafted in tandem with the Greater Washington Partnership, comes as part of a broader study of the region’s “Future Housing Needs.” The institute has been circulating some of the early findings of the study among area officials, offering some dire descriptions of Greater Washington’s housing market and outlining strategies to turn the tide for renters.

Traders Fixate on Trump’s Twitter Everywhere, Except in China
Wed, 04 Sep 2019 07:42:55 +0000
(Bloomberg) — Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. One country where traders are less obsessed over President Donald Trump’s tweets about China, is China.While their counterparts elsewhere grapple with the impact of Trump’s Twitter tirades, equity traders in China don’t have easy access given the service is blocked there. They aren’t rushing for work-arounds such as VPNs either, and say Trump’s tweets — often occurring out of trading hours — are having less impact on China’s equity markets than before.“It’s pointless following him too closely — he might say something today and it will be a whole different story tomorrow,” Zhang Haidong, a fund manager at Jinkuang Investment Management in Shanghai, said of Trump on Twitter. “Trading off his tweets alone would be too volatile.”That sentiment is wishful thinking for global traders who’ve become accustomed to market-moving tweet-bombs on everything from China and North Korea to Amazon.com Inc. and Harley-Davidson Inc. In remarks to reporters last month, Trump played down his impact on asset prices, saying “don’t tell me about 600 points” in response to that day’s U.S stock decline after a tirade.Trump’s tweets have moved Chinese markets, though there are signs the influence is waning. Onshore equities took a blow on May 6 when two tweets from Trump soured the outlook on trade talks and sent global markets plunging. The Shanghai Composite tumbled 5.6%, then the most in more than three years. At the time, China’s own Twitter-like platform removed posts about Trump’s comments. A measure of volatility on the Shanghai Composite Index shot up that month to the highest in three years.But since then tweets have had decreasing impact. The Shanghai Composite Index rose 0.9% Wednesday as traders shrugged off Trump’s Tuesday tweet that said a trade deal with China would be much tougher if he’s re-elected. Declines on the gauge were also limited to 1.4% when Trump announced more tariffs in early August and later that month. The 50-day volatility measure is now near the lowest since February last year.“People have very low expectations for a trade war resolution and valuations have fully priced that in,” said Fu Gang, a fund manager with Shanghai River East Asset Management Advisory Ltd.With Trump’s tweet salvos usually flying outside of China’s trading hours, screenshots shared in chat groups on platforms like Tencent Holdings Ltd.’s WeChat are sufficient, said Lin Qi, fund manager at Lingze Capital. “These tweets have a very short-term effect on the market so second-hand sources like screenshots or news reports are enough — we’re in it for the mid-to-long term.”China’s Shanghai Composite Index is up nearly 19% for the year despite the trade war’s twists and turns. The gauge has risen 2.5% this week, even amid the latest escalation. Forex traders have had a tougher time, with the yuan enduring its worst month versus the dollar on record in August.“When the trade war first started, the market fluctuated as people reacted emotionally,” said Elle Shi, fund manager at Manulife Teda Fund Management Co. “Now everyone recognizes this will be a long-term negotiation process.”Not that opportunities don’t arise in the aftermath of Trump’s tweets. Even for those who don’t look at them.“I’m growing numb to all this,” said Liang Jinxin, a strategist with Tianfeng Securities Co. “Just buy when the markets drop on the bad news, as you know that will be followed by good news after a while.”(Updates prices throughout and refreshes chart.)\–With assistance from Matt Turner and Ludi Wang.To contact Bloomberg News staff for this story: Amanda Wang in Shanghai at twang234@bloomberg.net;April Ma in Beijing at ama112@bloomberg.net;Livia Yap in Singapore at lyap14@bloomberg.netTo contact the editors responsible for this story: Sofia Horta e Costa at shortaecosta@bloomberg.net, David Watkins, Philip GlamannFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

This Drugstore Is a $3 Billion Headache
Wed, 04 Sep 2019 07:18:56 +0000
(Bloomberg Opinion) — Take Hong Kong protests, add a dash of Brexit and then stir in the death of brick-and-mortar shopping. It’s hardly surprising that a savvy investor would want to bail from its stake in A.S. Watson Group, a retailer based in the former British colony with a big U.K. footprint. These latest geopolitical flash points have been cited for Temasek Holdings Pte’s decision to table the sale of its $3 billion interest in A.S. Watson, Bloomberg reporters Manuel Baigorri, Joyce Koh and Vinicy Chan wrote Wednesday. The company has a sprawling operation in Hong Kong that includes the ubiquitous Watsons drugstore chain, supermarkets and electronics stores. Pro-democracy protests in the city, which have choked main commercial areas over the past several weekends, have become a problem. The city’s retail sales could plunge to a decade low in August, after an 11.4% drop in July, Bloomberg Intelligence says. Tourist arrivals in July fell 4.8% from a year earlier, the Immigration Department said. Meanwhile, A.S. Watson owns Superdrug, a pharmacy and beauty retailer with hundreds of stores in the U.K. As Brexit uncertainty rocks the pound, revenue coming in looks weaker for a parent that reports earnings in Hong Kong dollars (which trace the greenback).But offloading A.S. Watson would be a hard sell even without the background noise of these political dramas. Temasek forked out HK$44 billion ($5.6 billion) in 2014 to buy a 25% stake in the retailer from Hong Kong billionaire Li Ka-shing’s CK Hutchison Holdings Ltd., which remains the controlling shareholder. The global ports-to-telecom conglomerate said it planned to list the business within three years. In a world where the likes of Amazon.com Inc. and Alibaba Group Holding Ltd.’s Taobao have decimated traditional drugstores, finding a willing buyer has been an uphill task.The Singapore investment firm’s asking price also looks quite rich. The $3 billion tag for a 10% stake amounts to a valuation of $7.5 billion for the 25% currently owned by Temasek. In March, Citigroup Inc. analysts said that the target price implies a valuation of 16.5 times forward Ebitda – well above the 9 times the broker had assigned to A.S. Watson. While the stake had once piqued the interest of Mubadala Investment Co., the Abu Dhabi sovereign fund, and even Tencent Holdings Ltd., ultimately it wasn’t tempting enough for an interest with no management control.These unfortunate turns come just as things were starting to look up for A.S. Watson. The company was making headway into online groceries, including a tie-up for its ParknShop supermarket chain in Guangdong with mainland rival Yonghui Superstores Co. and Tencent. During the first half of the year, excluding a one-time HK$633 million gain from its mainland venture, Watson’s retail earnings before interest, tax and depreciation rose 6% in local currencies, driven by its health and beauty-product sales in Asia. Its Chinese operations also saw a turnaround, with same-store sales up 2.2% after declining 1.6% in 2018.Temasek, sitting in stable Singapore, has every reason to want to distance itself from political upheaval in Hong Kong and London. Given A.S. Watson’s troublesome mix, the retailer may need to go at a deeper discount. To contact the author of this story: Nisha Gopalan at ngopalan3@bloomberg.netTo contact the editor responsible for this story: Rachel Rosenthal at rrosenthal21@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

UPDATE 1-Amazon India plans to scrap single-use plastic, joins rival Flipkart
Wed, 04 Sep 2019 07:17:35 +0000
BENGALURU/NEW DELHI, Sept 4 (Reuters) – Amazon.com Inc's India unit plans to replace single-use plastic in its packaging by June 2020, the company said on Wednesday, the latest move by an ecommerce giant to weed out plastic use from the country's cities and towns that frequently rank among the world's most polluted. Last week, Walmart Inc's local ecommerce unit Flipkart said it had cut down on similar kinds of plastic use by 25% and planned to move entirely to recycled plastic consumption in its own supply chain by March 2021. The announcements come just weeks ahead of Prime Minister Narendra Modi's expected move to announce plans scrapping the use of certain varieties of plastic by 2022.

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