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AMZN at 93.76
I’m going to go with a broken wing call butterfly with plenty of time until expiration. This one is going to be a slow mover, but we will need this stock above 98 by March to make money in this trade (at expiry)
I’m buying 95/105 call spread and selling 105/110 call spread.
Risk in this trade is the debit paid to enter.
Probability of Profit: 40% – this means there’s about a 40% probability AMZN will be above breakeven at expiration.
Risk Profile:
Order Ticket:
AMZN at 112.31
I’m going to roll the long 94 call up to 100 strike to collect a credit. This move will make it a balanced butterfly, meaning the widths of the wings are equal or equidistant from the short strike.
AMZN will report earnings later today and while this trade has plenty of time until expiration, I’m just looking for a way to remove risk ahead of earnings.
Risk Profile:
Order Ticket:
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