Amazon.com
Panjang

AMZN 3100: Call Butterfly into Earnings on dips for Long

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AMZN has frustrated bulls with its chops, the historical patterns though indicated that prior to earnings, the stock tends to drop lower (as seen on those orange dots) yet they are buying opportunities for longs wanting to participate in the possible post-earnings explosive moves (as it has been in the past 2 quarters).

Plan to buy call butterfly of 3250/3350/3450, in addition, one could sell some PCS outside of 1ATR as the company's footprint has been increasingly larger in the Covid era, hence likely good results. The PCS also serves to finance the call butterfly.

Could also consider Call Butterfly of 3300/3400/3500 as a better but more expensive idea.

Penafian

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