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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: TraderDad who wrote (12074)	7/30/1998 1:57:00 AM
From: umbro	Respond to of 164684

Traderdad asks, "Any recommendations on which are the best %return puts for OCT, considering the rapid premium decay. I'm thinking deep in the money puts to serve as proxy for the short share I can't get anymore?" Here ya go: date: 07/29/1998 stock: AMZN price: 107.813 implied volatility: 0.888 Volume Option Theo. I. V. Delta Price Price --------------------------------------------------------------- put 85.00 Oct-17-1998 14 8.188 6.646 0.993 0.221 put 90.00 Oct-17-1998 34 10.062 8.499 0.984 0.259 put 95.00 Oct-17-1998 77 12.188 10.606 0.978 0.298 put 110.00 Oct-17-1998 37 17.688 18.368 0.854 0.430 put 115.00 Oct-17-1998 37 20.500 21.394 0.844 0.475 put 120.00 Oct-17-1998 12 24.438 24.617 0.880 0.511 put 130.00 Oct-17-1998 24 31.938 31.582 0.906 0.580 put 140.00 Oct-17-1998 17 37.688 39.146 0.809 0.681 The 115's at 21 3/8 or better are looking pretty good. Delta is about 0.5, so a 2 point drop in AMZN will give you about 1 point gain in the options.

To: TraderDad who wrote (12074)	7/30/1998 2:13:00 AM
From: Rob S.	Read Replies (1) \| Respond to of 164684

Makes perfect sense and fits with my observations of the TA and today's ticker. A nice confirmation of the double top. I think we will get nice momentum down before any serious attempt at a rally. Without the momo players in the game and no sane institutions going to touch it, the stock is in the hands of nervous smaller investors - or at they should be nervous and soon will be if not already. What's so nice about AMZN at this point is that there is still a long, long way to go before a 'normal' reasonable value is reached.