Buy Alert: April 14, 2014

| April 14, 2014

Buy Alert:  April 14, 2014

 

Trade Details

Buy Amazon.com (AMZN) May 17th $375 Calls for $1.90 or better

 

Why?

I’ve never been a fan of the phrase “throwing out the baby with the bathwater” as it tends to be overused.  However, it’s an appropriate phrase for recent market activity.  Several great companies are getting lumped in with the general selling going on lately in Nasdaq stocks.

AMZN is one of those companies that will always be underestimated because management doesn’t choose to show profits, but rather consistently reinvest in the company.   Now, the company plans on entering the smartphone market later this year.  Given Amazon’s history, it’s almost sure to be a success.

Nevertheless, the stock hasn’t jumped on the news and is still trading beneath the 200-day and 50-day moving average.  I typically don’t like to buy such far out of the money calls with only about a month to go until expiration.  However, in AMZN’s case, the stock could easily get there – especially with earnings coming out in 10 days.

 

 Recent Activity

Amazon

 

Category: OTW Buy Alerts