Amazon.com, Inc. (AMZN) Message Board

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

AMZN 226.19

-1.8%

Dec 12 9:30 AM EST

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To: H James Morris who wrote (11904)	7/28/1998 2:26:00 AM
From: umbro	Read Replies (2) of 164684

When the elephants are fighting, stay out of the jungle. HJ, your note reminded me of that one-liner; good advice for sure. I think (I know) money can be made with The Beast, but only if you don't own a "position" too long -- its volatilty will prove both sides wrong. Also, the market is sucking premium out of the options on a daily basis, which makes it more frustrating for traders who take the correct position, but at the wrong (options) price. The best way to trade AMZN options is to try and pick off the day's extremes with limit orders, and to set reasonable targets. Let's say we're looking for (yet another) multi-point range day in AMZN, but want to buy the bounce; we look for a retest of the low on the Aug 130c's, and put in a limit order of say $6.25 (current ask is 10), and see if we can pick it off. Feeling bearish? Put in a buy order of $6.75 on the Aug 115p's. In both cases look for about a 2 point profit target (the actual range has been twice that). AMZN has been volatile enough that you can get filled on both sides and make money long/short -- trust me. :)

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