Buy
AMZN via selling a vertical put spread
selling
the May 235 puts, buying May 225 puts @272.9
There
was a headline story on Yahoo about Amazon being ready for a
pullback. It is always risky taking a position ahead of earnings, but
if anything the chart looks bullish. The vertical spread caps any
loss and helps with the margin requirement on a high priced stock. The
trade off is the cost of the lower put.
Elsewhere,
gold continues its bounce back. One scenario is a 1987 style crash,
when the stock market went up six fold after its crash. I'm not
predicting, just saying there is a chance. The rally in Lennar Homes
makes me net short. For now I'll hold on to both sides of the short
strangle (short May 43 calls, May 36 puts).
Long
BA LGF PG WFC TSLA
Net
long AMZN APC SPY
Net
short LEN
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