Sweet 16 Option Trades

The Options Trader’s Guide to Technical Analysis

#16 AMZN April 125 Puts

By Jim Woods, OtionsZone Editor

I’ll admit that online retailer Amazon.com (AMZN) is one of my favorite
companies, but it’s not my favorite company. That distinction goes to Apple (AAPL),
and the release of its new iPad — slated for April 3 — looks like it’s going to rock Amazon’s world.

According to the latest ChangeWave Alliance research, huge pre-launch iPad demand is going to have a major impact on the e-reader market. So, for
a great way to sink a winning shot from what I suspect will be a double dribble in Amazon shares in the week before and after the iPad’s release,
my pick is the AMZN April 125 Puts (QZN   100417P00125000).

This out-of-the-money put option could be a huge winner if Amazon shares begin to sell off, so I’m taking this outside shot.

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