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re: AMAZON Beats earnings

Posted on 1/30/20 at 10:26 pm to
Posted by Jag_Warrior
Virginia
Member since May 2015
4079 posts
Posted on 1/30/20 at 10:26 pm to
quote:

Do they teach you how to write naked calls for max gains?

J/K don't do that.


Well, Option Alpha is more about high probabilities and risk/reward, rather than just pure (potential) reward. I mean, it’s fairly common for me to write 10 or more short credit spreads on AMZN and/or BKNG in a given week. But you’d be talking some crazy margin (and crazy risk) to write 10 naked calls or puts on a high priced stock like AMZN or BKNG. Being told by your broker that you’ve got 1000 shares of a $2000 stock headed your way would ruin breakfast for most folks.

Option Alpha pretty much follows a similar premium selling methodology as TastyTrade. Rather than just selling a naked call (or a naked put), they’d probably lead you into selling a strangle or a straddle. But in cases where you want a directional play, it would probably be a high probability credit spread... typically 25-30 delta.
Posted by lynxcat
Member since Jan 2008
24121 posts
Posted on 1/30/20 at 10:44 pm to
quote:

I find it amazing that company with 900B market cap can go up 13% because of the last three months.
It's pretty fascinating.


Agreed. It basically says the valuation methods we use are useless (but we don’t have anything better).
Posted by leoj
Member since Nov 2010
3106 posts
Posted on 1/31/20 at 12:41 am to
Anyone who has the 1/31 calls around say $2000 is making 30x their investment tomorrow. Insane move.
Posted by taeemwar
Dallas
Member since Apr 2010
536 posts
Posted on 1/31/20 at 8:12 am to
I made a nice profit yesterday. I actually increased my position late yesterday and it worked out great for me. Currently have Google but thinking about up my stake today.
This post was edited on 1/31/20 at 8:14 am
Posted by Pendulum
Member since Jan 2009
7038 posts
Posted on 1/31/20 at 8:46 am to
Think we are giving up 2000
Posted by stout
Smoking Crack with Hunter Biden
Member since Sep 2006
167071 posts
Posted on 1/31/20 at 8:51 am to
Closed out my positions for a small 321% gain. Not too bad

I also made 354% on my CL calls. I am mad because I halved my position yesterday because I pussed out a little. I knew they would beat but I felt like the market did too and the beat was built in as they had negative movement all week.

Think I might splurge for lunch and go to Taco Bell today
Posted by stout
Smoking Crack with Hunter Biden
Member since Sep 2006
167071 posts
Posted on 1/31/20 at 8:55 am to
Dude on r/wsb made $434K on his AMZN calls. Could have made more but he sold at the open. Usually, the best time is about 15 minutes after the open. I bet he couldn't sleep all night.






And then this poor soul lost $53K


This post was edited on 1/31/20 at 8:58 am
Posted by hiltacular
NYC
Member since Jan 2011
19665 posts
Posted on 1/31/20 at 9:21 am to
One thing to note: The physical stores segment, which includes Whole Foods, had $4.4 billion in sales for the period, down 1% from a year ago.. They still haven't figured out brick and mortar. International retail is also operating at a loss for them.

I'd really like to see Amazon's sector by sector breakdown to see what specifically is driving profit, although I am sure web services is the meat and potatoes. NVM found it: Amazon said that its Amazon Web Services cloud-computing segment was responsible for $2.6 billion in operating profit, 67% of Amazon’s total,

I really think they are at a point where AWS needs to spin off into its own company.
This post was edited on 1/31/20 at 9:29 am
Posted by taeemwar
Dallas
Member since Apr 2010
536 posts
Posted on 1/31/20 at 9:38 am to
That 30 calls was a great call. What was his downside?
Posted by stout
Smoking Crack with Hunter Biden
Member since Sep 2006
167071 posts
Posted on 1/31/20 at 11:24 am to
About $80k if they expired worthless today. He wasn't in the money all week until the earnings call. Very ballsy and a huge gamble.
Posted by taeemwar
Dallas
Member since Apr 2010
536 posts
Posted on 1/31/20 at 12:17 pm to
Google earning are Monday.....thinking about taking a short-term run.
Posted by Pendulum
Member since Jan 2009
7038 posts
Posted on 1/31/20 at 12:20 pm to
I'm resisting buying up google. I'm worried about some bad news coming this weekend and sucking down the whole market a little. I feel like China is gonna seriously ramp up their coronavirus numbers since they are doing substantial testing now. Do I think the coronavirus is that big of a deal personally, no....does the general market seem to think it is...yes

But it's not like you cant hold google, if things dont work out.

But you would think their numbers follow the other cloud kings trend.
This post was edited on 1/31/20 at 12:21 pm
Posted by Bestbank Tiger
Premium Member
Member since Jan 2005
70801 posts
Posted on 1/31/20 at 12:21 pm to
Gotta pump those numbers up to post on the OT.
Posted by taeemwar
Dallas
Member since Apr 2010
536 posts
Posted on 1/31/20 at 1:30 pm to
Holding about 200 shares but I do believe their numbers should follow the other cloud kings. This coronavirus virus is killing momentum.
Posted by stout
Smoking Crack with Hunter Biden
Member since Sep 2006
167071 posts
Posted on 1/31/20 at 2:39 pm to
I bought two Google calls. I was going to wait until Monday to see what happens with the virus but the call I was watching was already down $9 today while others weren't moving as much. I feel OK about it. Not great but I can still average down Monday if need be.
Posted by lynxcat
Member since Jan 2008
24121 posts
Posted on 1/31/20 at 2:48 pm to
Spinning off AWS would be a financial engineering play and nothing more. It’s still the backbone to everything Amazon does and spinning it off would only create more operational complexity for the organization. No thanks.
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