Amazon (AMZN) Offering Possible 47.06% Return Over the Next 24 Calendar Days

Amazon's most recent trend suggests a bearish bias. One trading opportunity on Amazon is a Bear Call Spread using a strike $1750.00 short call and a strike $1755.00 long call offers a potential 47.06% return on risk over the next 24 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $1750.00 by expiration. The full premium credit of $1.60 would be kept by the premium seller. The risk of $3.40 would be incurred if the stock rose above the $1755.00 long call strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Amazon is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Amazon is bearish.

The RSI indicator is at 26.09 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Amazon

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Mon, 25 Nov 2019 08:01:00 +0000
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Amazon opens pop-up store on China's Pinduoduo until year-end
Mon, 25 Nov 2019 07:02:17 +0000
Amazon.com Inc on Monday said it will open a pop-up store on Chinese e-commerce platform Pinduoduo Inc that will run until the end of December and carry a selection of about 1,000 products from overseas. The move, which was initially reported by Reuters on Sunday, points to how the U.S. firm's China strategy is evolving after it decided earlier this year to stop operating a marketplace in the country for domestic-selling merchants. Amazon had found it difficult to compete with entrenched, home-grown players such as Alibaba Group Holding Ltd's Tmall and its rival marketplace from JD.com Inc. In a sign of Tmall's dominance, Amazon opened an online store on the platform in 2015.

Black Friday disrupts traditional build of Christmas shopping in the U.K. as millennials head online
Mon, 25 Nov 2019 06:48:00 +0000
More than half of Gen Z consumers intend to purchase something on Black Friday but the timing of the event is set to disrupt festive shopping

Amazon Teams Up With China Upstart for Black Friday Sale
Mon, 25 Nov 2019 05:43:19 +0000
(Bloomberg) — Amazon.com Inc. is counting on a smartphone app known for cheap deals to lure Chinese consumers during the Black Friday online spree, in a partnership that extends to the end of the year.The U.S. e-commerce giant’s cross-border unit has just opened a storefront on Pinduoduo Inc., China’s No. 3 online retailer after Alibaba Group Holding Ltd. and JD.com Inc.Starting from Nov. 28, the three-day sales campaign will offer Chinese consumers a range of overseas products from Australian baby formula to luxury watches and Nintendo Switch consoles. Pre-sales for some brands are already underway for the U.S.-inspired annual shopping extravaganza.PDD and Amazon said their partnership would continue until the end of December. In a statement, Amazon said its pop-up store on PDD will provide about 1,000 branded foreign products.In July, Amazon shut down its Chinese marketplace business in yet another example of how U.S. tech companies struggle to contend with local competitors in China. The company still runs businesses including Kindle e-books and international operations in the country. Kindle has flagship stores on Alibaba’s Tmall, JD and PDD.While Chinese buyers are accustomed to splurging during shopping festivals created by local retail giants, they also seek out bargain foreign products during Black Friday. The tie-up will help Amazon tap the half billion annual active buyers on PDD’s addictive app.It comes on the heels of Alibaba’s Singles Day promotion on Nov. 11, which has overtaken Black Friday to become the world’s biggest shopping event. Alibaba logged a record $38 billion of purchases during the 24-hour shopping marathon this year. JD and PDD also launched similar campaigns around that date.Founded in 2015, PDD has carved out a niche with social commerce that encourages making purchases with others in return for generous discounts. But the Shanghai-based startup is now working to shake off its reputation for hawking cheap products, just as rivals Alibaba and JD delve into PDD’s base of smaller cities. Last week, the company posted worse-than-expected earnings for the third quarter, triggering its biggest share drop since its July 2018 debut. Its partnership with Amazon now offers the company a chance to recover some of the lost ground.“The move works disproportionately in Pinduoduo’s favor,” said Michael Norris, research and strategy manager at Shanghai-based consultancy AgencyChina. “It adds credence to its claims that it’s a space for consumers to buy branded goods, and accelerates internal plans to be active in cross-border e-commerce.”(Updates with Amazon statement in fourth paragraph)\–With assistance from Matt Day.To contact the reporter on this story: Zheping Huang in Hong Kong at zhuang245@bloomberg.netTo contact the editors responsible for this story: Peter Elstrom at pelstrom@bloomberg.net, Colum Murphy, Vlad SavovFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

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