Amazon.com, Inc. (AMZN) Message Board

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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 229.55

+0.2%

Dec 5 9:30 AM EST

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To: Glen McGlaughlin who wrote (30916)	12/23/1998 1:04:00 AM
From: jach	of 164684

Although it is one way of taking advantage of a stock slide, it is hard to justify paying hefty premium on PUTs for volatile stocks such as AMZN. tradepbs.com AMZN April 300 PUTS are asking for 52$. So, one can make some dough only if AMZN drops below (300-52)=248$ on or before April 3rd.week Friday. AMZN is at 322, so it has to go down 74$. That can be a potential likely scenario as we have seen AMZN went up from 200 to 322 in a few weeks. It can come down as fast as it had gone up, so there is always some possibility which imo is a good possibility. Besides shorting and buying puts, another way to bet if one beleives a stock is going to go down is to sell call options for the stock. One can sell April 350 calls and pocket at a good premium. Basically it is the same as taking a short position at the price of (350+premium)if one gets assigned at expiry.

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