Amazon Options Follow Bullish Trend Ahead of 4Q Earnings

Amazon Options Follow Bullish Trend Ahead of 4Q Earnings

Assessment

Interactive Video

Business

University

Hard

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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.

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5 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

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

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

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

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3.

OPEN ENDED QUESTION

3 mins • 1 pt

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

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4.

OPEN ENDED QUESTION

3 mins • 1 pt

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

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5.

OPEN ENDED QUESTION

3 mins • 1 pt

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

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