Amazon.com, Inc. (AMZN) Message Board

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

AMZN 229.12

-0.2%

3:59 PM EST

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To: Oeconomicus who wrote (819)	11/20/1997 11:13:00 PM
From: Bilow	Read Replies (1) of 164684

Hi R. D.; About that put ratio backspread, I suppose you mean buying the lower strike put and selling fewer of the higher put in the ratio of their deltas. I think that would be a bit too neutral for me (same with the butterfly), cause I'm convinced AMZN eventually goes to single digits, why do I need any upside protection? Maybe I'll go ahead and pick up the July 45 puts and have done with it. The problem is that with the put at $8.50, the stock has to go to $28 by expiration for me to double my money at that time - not the best odds, for a nasty risk. I think I'll pass. Perhaps it's the wide difference of opinion among the investing (or speculating) public about the outlook for this stock that has the implied volatility so high -- Lots of demand for the options. -- Carl

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