Monday, February 11, 2013

AMZN March $255 Calls

The more I look at AMZN, the more it bothers me; it's still in the volatility/shakeout stage and I like the positioning on the equity short, I don't want to move that, but I don't like this simple, longer term chart's trend...
That's a 60 min chart with a positive divergence.

So I'd prefer to hedge the Equity short with a March $255 Call, notice I'm going back to my normal way of using options with longer expirations and in the money, although not very deep here. The best of both worlds is both positions work, the calls make money, AMZN is hedged and then the calls are sold and AMZN continues lower.


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