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

AMZN 220.66

+1.6%

3:59 PM EST

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To: umbro who wrote (9916)	7/11/1998 1:57:00 PM
From: umbro	Read Replies (3) of 164684

Update on AMZN options. First the July 100 straddle is about $11 as of Friday's close. It was $13 at 12 noon ET, so clearly some volatility is coming out of July options. I show current implied at a healthy 96%, was about 110% during the trading day. A typical tech stock like CSCO or MSFT usually trades at an implied of 30%, and AMZN was trading at 77% implied just a few weeks ago. That's probably the more "normal" level for AMZN. Conclusion: still a good time to sell premium, if you've got a strategy for hedging your risk. They haven't updated the OI stats. yet, so I can't tell what the change in OI was for the options. Here's the latest summary info. (looking at only strikes in the 90 to 110 range): Options Forecast for: JUL put price: 95.24 OI = 11141 VOL = 3306 call price: 105.25 OI = 7388 VOL = 1568 consensus: 98.96 R = 1.5 R = 2.1 Options Forecast for: AUG put price: 83.72 OI = 5334 VOL = 840 call price: 113.27 OI = 2154 VOL = 489 consensus: 92.26 R = 2.5 R = 1.7 Options Forecast for: OCT put price: 79.64 OI = 1281 VOL = 62 call price: 117.37 OI = 2915 VOL = 64 consensus: 106.04 R = 0.4 R = 1.0 net long/short: -0.52 mil. The trading volume Put/Call ratios turned very bearish short term (consult the message this was a reply to, to see the 'before' picture). From a contrarian point of view, this is bullish, so be careful, if you're short.

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