Hi Howard,
Lots, of questions. -g- As far a AMZN goes, there has been plenty of hokey things going on due to some pretty dang unique circumstances which now seem to be running out of gas. I would characterize the recent trading as people taking advantage of the situation. Maybe we will have an up repeat but it seems to be about time to turn out the lights. Options MM are leaving, the stock is on restricted lists, people are waking up to the fact that it is just a retailer with zero or negative margins, people want to make an example out of the stock as an Inut crazy, etc.
Puts are the way to play AMZN on the way down, just wait for the correct pricing and don't chase it. The pricing will change, I noticed quite a bit this morning. And only bet enough so that you can continue to play the game. You can always go to deep ITM near term and basically duplicate shorting the stock with little premium and a bit of leverage. Or, get into spreads, which of course has its limits.
Who knows what will happen to the market and no one can predict it. I was concerned about the SS proposals yesterday morning, but now not too much, the only risk is spinning by Street Walkers to support unreasonable market predictions. -g-
So, I will sit back and consider, however, Amzn is a much better risk going short than the general market. Oh, and one observation about liquidity. The Street is bringing tremendous amounts of stock and debt to market, which is a huge sponge. Can the inflow cover that and the evaporation rate?
Regards, Ice |
