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 is the expected movement of Amazon's stock post-earnings based on historical trends?

• 5%

• 8%

• 10%

• 12%

Which factor is mentioned as a contributor to Amazon's stock performance?

• Interest rate hikes

• U.S. tax reform

• Global trade agreements

• Cryptocurrency adoption

What does a high call-to-put ratio indicate about market sentiment?

• Bearish sentiment

• Neutral sentiment

• Bullish sentiment

• Indifference

How are calls priced compared to puts when the stock is near record highs?

• Calls are unavailable

• Both are equally priced

• Puts are cheaper

• Calls are cheaper

What might happen to options volatility if Amazon's stock remains flat?

• Volatility will become unpredictable

• Volatility will remain the same

• Volatility will increase

• Volatility will decrease