TSLA
Tesla
-- 417.410 NVDA
NVIDIA
-- 137.490 BA
Boeing
-- 176.550 MSTR
MicroStrategy
-- 302.960 RGTI
Rigetti Computing
-- 17.0000 
Amazon's Options Market Sees Tug of War Between Bulls and Bears
There's a tug of war between the bulls and the bears playing out in $Amazon (AMZN.US)$'s options market as the stock of the ecommerce and cloud infrastructure giant struggles to find a direction.
Unusual trades posted Thursday showed eight block transactions, including four positions that were bearish, three bullish and one neutral. The biggest of them was multi-leg transaction worth millions of dollars that had both a bullish and a bearish position.
The first leg of that trade involved an active seller collecting a $13.26 million premium for writing call options giving the holders the right to buy 972,000 Amazon shares at $175 each by Oct. 18. The other leg involved an active buyer paying a premium of $11.37 million for Amazon call options that give the holders the right to purchase the same number of shares at $185 by Nov. 15. The trades were posted at 10:23:18 a.m. in New York Thursday, according to data compiled by moomoo.
The first leg of that trade involved an active seller collecting a $13.26 million premium for writing call options giving the holders the right to buy 972,000 Amazon shares at $175 each by Oct. 18. The other leg involved an active buyer paying a premium of $11.37 million for Amazon call options that give the holders the right to purchase the same number of shares at $185 by Nov. 15. The trades were posted at 10:23:18 a.m. in New York Thursday, according to data compiled by moomoo.
That tug of war between the bulls and bears has also been playing out in the broader market as investors parse through economic data for clues on the magnitude of the interest rate cuts that the U.S. Federal Open Market Committee (FOMC) could implement as next week's meeting. Optimism over the outlook of the stock market has been tempered by concerns that slowing economic growth could crimp corporate profits.
On Wednesday, the tech-heavy $Nasdaq Composite Index (.IXIC.US)$, which counts Amazon among its constituents, slipped during morning trade, before wiping out those declines and closing 2% higher.
By midday Thursday, more than 309,500 Amazon options changed hands, landing it in the fifth slot for the most active stock options, behind $NVIDIA (NVDA.US)$, $Tesla (TSLA.US)$, $Broadcom (AVGO.US)$ and $Apple (AAPL.US)$. (To see the options ranking, click here.)
The heaviest volume in the Amazon options market is in call options that give the holders the right to buy the stock at $187.50 by the close of trading tomorrow. Almost 26,000 calls changed hands so far, more than triple the open interest. That contract traded between a high of 99 cents and a low of 26 cents before reaching 36 cents at 12:10 p.m. Thursday.
Share your thoughts on Amazon shares in the comments section and if you have a price forecast for the stock, please vote below.
Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
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Luzi Ann Santos
Moomoo Senior News and Community Manager
Former editor at Bloomberg, ex-commentary editor at Lazard. Posts aren’t investment advice. Views are just mine.
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102928701 : Thank you![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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well presented and explanatory
MaoLo : There needs to be a pullback to 160 before reaching 190.
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54088 FROM RWS : 200
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