Amazon stock falls ahead of earnings report, with options traders not expecting too much action after results

2 months ago 29
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Shares of Amazon.com Inc. AMZN, -1.00% fell 1.0% successful day trading, arsenic investors braced for the ecommerce and unreality giant's second-quarter net study owed retired aft the closing bell. The banal has declined the time aft the past 3 net reports were released, and aft 8 of the past 11 reports for an mean diminution of 3.9% during those days, according to information provided by FactSet. Options traders aren't expecting excessively overmuch enactment successful the banal aft the net report. An options strategy known arsenic a straddle, which involves the simultaneous buying of some bullish options (calls) and bearish ones (puts) with the aforesaid "at the money" onslaught price, implied a post-earnings determination of $115.61 successful Amazon's banal terms successful either absorption connected Friday, compared with an mean determination of $136.55 aft the past 12 quarterly reports, according to information provided by Option Research & Technology Services (ORATS) main Matt Amberson. Amazon's banal has gained 3.5% implicit the past 3 months, portion the S&P 500 SPX, +0.42% has precocious 5.0%.

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