Amazon (AMZN) Offering Possible 32.45% Return Over the Next 24 Calendar Days

Amazon's most recent trend suggests a bullish bias. One trading opportunity on Amazon is a Bull Put Spread using a strike $1750.00 short put and a strike $1740.00 long put offers a potential 32.45% return on risk over the next 24 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $1750.00 by expiration. The full premium credit of $2.45 would be kept by the premium seller. The risk of $7.55 would be incurred if the stock dropped below the $1740.00 long put 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 up which suggests that the medium-term momentum for Amazon is bullish.

The RSI indicator is at 55.44 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

5 Earnings Announcements to Watch This Week
Mon, 21 Oct 2019 09:15:00 +0000
Earnings season is trundling on, and even though we got numbers from companies like JPMorgan Chase, Netflix and UnitedHealth Group last week, this week looks set to be even more exciting.

Just Eat Shares Decline as Growth in U.K. Orders Slows
Mon, 21 Oct 2019 08:37:37 +0000
(Bloomberg) — Just Eat Plc’s shares fell as much as 6.4% in London trading on Monday after the company said U.K. order growth slowed in the third quarter.Shares declined 6% to 587.6 pence at 8:56 a.m. after earlier touching 622.8 pence, the biggest intraday retreat since September.U.K. order growth slowed to 8% for the calendar third quarter — compared to 11% for the period before — after the company’s marketplace business slowed, Just Eat said in a statement on Monday. Increased competition from the likes of Uber Eats and Deliveroo as well as easy access to grocery delivery may be impacting the business’s expansion, analysts at Peel Hunt said in a note to investors on Monday.The company left its guidance for the full-year unchanged and expects revenue of as much as 1.1 billion pounds ($1.4 billion).The firm agreed this year to sell itself to Takeaway.com NV of the Netherlands for 5 billion pounds in shares. The companies have said they expect the deal to close by year end. The deal gave Just Eat shares an implied valuation of 731 pence.The U.K. competition regulator said last week that it had started a probe into Amazon.com Inc.’s bid for Roofoods Ltd., which does business under the Deliveroo brand.\–With assistance from Kit Rees.To contact the reporter on this story: Amy Thomson in London at athomson6@bloomberg.netTo contact the editors responsible for this story: Giles Turner at gturner35@bloomberg.net, Nate Lanxon, Paul SillitoeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

Saudi Aramco Is the WeWork of Energy
Mon, 21 Oct 2019 06:11:52 +0000
(Bloomberg Opinion) — On paper, you could scarcely imagine two more different companies than WeWork and Saudi Aramco. The serviced-office startup is a notorious cash sink, while Saudi Arabian Oil Co. is a gusher of dollars. In retrospect, the canceled initial public offering by WeWork’s parent We Co. seems inevitable, given its $17.32 billion in net debt and negative free cash flow of $2.94 billion in the year through June. By contrast, Aramco’s $88.49 billion of free cash flow and $5.55 billion in cash net of debt suggest there’s still plenty to tempt investors.Yet the two abortive share sales have a core attribute in common. In both cases, powerful insider interest groups came to the process with an elevated idea of the valuation they could achieve, and backed away when reality refused to conform to their expectations. Bankers put the Aramco sale on hold last week after it became clear that international investors wouldn’t swallow the $2 trillion market capitalization Saudi Arabia’s Crown Prince Mohammed bin Salman first laid out almost three-and-a-half years ago, Bloomberg News reported Friday, citing people familiar with the matter. A number closer to $1.5 trillion looked more viable, one of the people said, and even that reduced number was some way above the more realistic figures in the $1 trillion range calculated by my colleague Liam Denning.If writing off the equivalent value of Tesla Inc. was disappointing for WeWork and its key investor SoftBank Group Corp., it’s no surprise that Prince Mohammed is balking at seeing an Amazon.com Inc.-worth of value disappear at the click of a banker’s spreadsheet. Still, letting markets pass the verdict on valuation is what IPOs are meant to be about. If Prince Mohammed ever wants to get this share sale away, he should take their skepticism as a cue for reflection, not rejection.For one thing, valuations just aren’t what they were when the idea of an Aramco IPO was first mooted back in early 2016. On an enterprise-value-to-Ebitda multiple, major listed independent and state-controlled oil companies are running at about a 29% discount to the valuations they were enjoying in April that year, when Prince Mohammed first put a number on Aramco’s market cap. Aramco’s cash and debt holdings are nugatory next to its vast cash flows, so you can translate that into a roughly $600 billion discount off the equity value it might have got at the time. Value Aramco’s $216.6 billion in Ebitda on the median multiple of the major listed national oil companies and you’re looking at a number just shy of $900 billion.The problems are compounded by the way the IPO has been handled. One reason the state oil companies mostly trade at a discount to independent producers is the perception that their corporate governance is caught up in politics. Aramco is hardly immune: Just last month, Khalid Al-Falih was removed from the roles of Aramco chairman and Saudi Arabia’s energy minister in the space of a week. In the first role, he was replaced by Yasir Al-Rumayyan, a SoftBank director and the head of the country’s sovereign wealth fund, which will become Aramco’s largest shareholder once the IPO is completed. In the latter, his place was taken by one of Prince Mohammed’s half-brothers.Neither move suggests the sort of insulation from insider considerations that would convince shareholders to give a generous multiple to Aramco — and in terms of political risk, there’s the whole matter of a cold war with Iran,  drone strikes on oil facilities, and Saudi Arabia’s position as the swing producer for the entire oil market to consider, too.Aramco has one giant advantage over WeWork. Thanks to those enormous cash flows, there’s really no reason that it needs an IPO. Without an infusion of investor cash, WeWork may struggle to make it through the next quarter. Aramco could, in theory, keep going in its current fashion for decades.The same can’t be said of the state with which it’s intertwined. The Saudi government needs an oil price of $78 a barrel to balance its budget, according to the International Monetary Fund, a level last seen in 2014. Running a fiscal deficit won’t be the end of the world, but in the long run the country still has a wicked problem. It must find a path to a sustainable economy in a world where its population is rising even as demand for oil must start to fall if the the worst effects of climate change are to be avoided.Aramco, which gives about half of its revenue back to the government in the form of taxes and royalties, is going to find itself on the front line of those challenges over the coming years. No wonder outside investors aren’t rushing to join the party.To contact the author of this story: David Fickling at dfickling@bloomberg.netTo contact the editor responsible for this story: Matthew Brooker at mbrooker1@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

How Amazon’s Twitch Platform Makes Money
Sun, 20 Oct 2019 22:56:09 +0000
Twitch may just be Amazon’s best-kept secret. Here is how the esports streaming service makes money. Acquired in a 2014 bidding war with Google for $1 billion in cash, the gaming platform, and the social network continues to break its own high scores.

Earnings extravaganza — What to know in the week ahead
Sun, 20 Oct 2019 15:53:57 +0000
Earnings will be the focal point for investors this week, as about a quarter of the S&P 500 companies gear up to report results.

Related Posts

 

MarketTamer is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of MarketTamer are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory.


This company makes no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended in this email, and makes no representations or warranties concerning said company or entity’s compliance with applicable laws and regulations, including, but not limited to, regulations promulgated by the SEC or the CFTC. The sender of this email may receive a portion of the proceeds from the sale of any products or services offered by a company or entity mentioned or recommended in this email. The recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability, for any purchase or order made from any company or entity mentioned or recommended in this email.


The content on any of MarketTamer websites, products or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options and other securities involves risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities is not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options. The www.MarketTamer.com educational training program and software services are provided to improve financial understanding.


The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.