Amazon Options Follow Bullish Trend Ahead of 4Q Earnings

The video discusses Amazon's implied volatility, which is at its peak, indicating potential significant stock movement. Historically, Amazon's stock moves about 8% around earnings. The current market shows a high call-to-put ratio, suggesting bullish sentiment. Despite high volatility, the cost of puts is low, indicating potential for a pullback. The video also includes a chart analysis showing Amazon's record-high share price and discusses the implications of these market conditions.

What does an implied volatility close to 100% indicate about Amazon's stock movement?

Historically, how much does Amazon's stock typically move around earnings releases?

What factors have contributed to Amazon's stock performance year to date?

How does the call to put ratio reflect market sentiment regarding Amazon's earnings?

What implications does elevated volatility have for options trading in Amazon?