AMZN Weekly Options Trade Plan 2025-03-19
Weekly Options Trade Plan for AMZN
Technical Analysis Synthesis:
Price Action: The last five minutes show a slight downtrend, with prices closing lower each time. On the daily chart, AMZN has been trading within a range but with a recent slight downtick. Moving Averages: 5-minute chart: Price is above the 10 and 50 EMAs but below the 200 EMA, indicating short-term strength but long-term resistance. Daily chart: Price is well below all EMAs, particularly the 50-day, suggesting a bearish trend. RSI: 5-minute: RSI is hovering around 60, not indicating overbought or oversold conditions but showing momentum. Daily: RSI is low at 32.55, indicating potential oversold conditions but not yet in oversold territory (<30). Bollinger Bands: 5-minute: Price is between the middle and lower bands, showing some bearish pressure. Daily: Price is near the lower band, suggesting the stock might be due for a mean reversion. Support/Resistance: Key support at $193.25 and $191.82, resistance at $195.61 and $197.50 (Max Pain Level).
Market Sentiment Integration:
VIX: Currently at 20.59, indicating elevated volatility but trending downward. This suggests a slight decrease in market fear. News Impact: The news about ACV having near-term risks might influence sentiment but is not directly related to AMZN. Performance comparison and dividend declaration are neutral to slightly bullish. Google's acquisition might put pressure on smaller cyber vendors, potentially benefiting larger tech companies like AMZN. Option Chain: High open interest at the $197.50 strike (max pain level), suggesting market participants expect the stock to gravitate towards this level by expiration. Put options at $187.50 and $190.00 are liquid with premiums within the $0.30-$0.60 range, indicating potential bearish sentiment.
Directional Determination:
Strongly Bearish: The daily chart's position below all EMAs, low RSI, and the proximity to lower Bollinger Bands strongly suggest a bearish trend.
Options Strategy Selection: