>You got me into this.
~~~~~~~~~~~~~~~~~~~~~
Rashid,
I am honored. You bestow on me far more option knowledge then
I possess. Can't answer some of your questions, but the
ones I can answer are quite simple. The reason I chose the Oct.
65 puts was when I bought them (when AMZN was in 90's) they
gave the best bang for the buck. They cost me $4, while the
70's were selling for 5 1/8 and the 60's were around 3.50....
While I was not certain AMZN would go down to $65
(how could I be), I did feel strongly AMZN would
decline with the overall market, probably more as people
are putting their money in "safe" products, which as a company
losing money, AMZN is anything but safe.
Now even if AMZN went to $80, my "puts" would increase
in value as it neared the $65 strike price. Once/If it
goes below $65 much of the "premium" will be gone, but
I will be "in the money" and will be matched 1 pt. gain
for each 1 pt. decline. Also, last week AMZN found support
(minor) at $66....in my novice TA eyes that said if market
continues to tank, we will break that.
Lastly, if AMZN does go to $50, I will be too busy partying
to care about my next move with it, but would probably stop
trading AMZN since there would probably be a TA bounce.
Regards,
Skane |
