Amazon Put Option Trade Call on Dip Buying

3 months ago

Mark Roussin, CPA

"I continue to think Amazon is a is a great value here, but some of you may want to be a little bit more patient. Some of you may want to earn income. Some of you may want to utilize options. And that's why I continue to stand by this particular option play. This is a um one that I covered on a recent video investing $100,000 into a single stock. It was on Amazon covering this particular put option. So, if you didn't yet get into that, you still can because you still have roughly 30 days till expiration. That $200 strike ending on November 21st can earn you $355. Put that into real dollar terms, that's $355 per contract. So, one contract, you can generate 355. And that puts you on the hook saying, "Hey, I will gladly buy Amazon if that stock price does in fact drop below 200 over the course of the next 21 days. I have no issue buying Amazon at a price tag at 200. Will that be the exact bottom? I don't know. we could go down to 180, but doing my homework right now, I have no problem buying this particular company at $200 if it in fact gets um that low."

The speaker presents a trade call on Amazon, recommending a put option play that allows investors to buy the stock at $200 if it drops. He explains the mechanics of the option with clear time sensitivity (roughly 30 days until expiration) and a defined strike price, indicating strong conviction on Amazon's value at a dip.

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