Options trader Mike Khouw recently joined Melissa Lee and the traders on CNBC’s ‘Options Action’ to discuss Amazon’s upcoming earnings report. Khouw noted that Amazon’s stock has been under pressure in recent months due to concerns about slowing growth and increased competition. However, he also pointed out that the company remains a leader in e-commerce and cloud computing.
Khouw discussed several potential trading opportunities in Amazon ahead of earnings. He suggested that investors could consider buying call options if they believe the stock will rise after the report. Alternatively, they could buy put options if they believe the stock will fall.
Khouw also cautioned investors that Amazon’s earnings report is always a volatile event. He recommended that investors manage their risk carefully and only trade with capital they can afford to lose.
