$AMZN reports earning tonight. If they report a massive profit, look out below. However, a negative earnings-per-share (EPS) could result in a 20% move higher.
Can you sense the sarcasm?
I did almost all my holiday shopping via Amazon this year. Who needs to get off their morbidly obese behind to shop, when $AMZN will ship free to your home? Life is good.
Life has been good for $AMZN investors as well. The stock sits just off all-time highs. Come 2016, they're expected to post over $10 a share in profit. If investors have taught us anything about $AMZN, it's that they're willing to wait for the profits.
$AMZN has been trading in a $20 channel for the last 2 months. The stock looks poised to break out of this channel to the upside. Could tonight's earnings report push the stock to new all-time highs? I think there's a significant likelihood of a move over $420. I'll will be looking for some out of the money calls to capitalize on this possible move.
When $AMZN finally starts booking some large profits, that will be the time to short the stock/buy the puts. For now, it's business as usual.
