Max Grigoryev
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Max Grigoryev in Fundamentality,

AMZN - short strangle will make you some money

Amazon is a very expensive and sometimes volatile stock. Amazon's current standard deviation is around 1.27, so that's not that big, but still higher than INTC has, for example. But the stock just moved significantly over the last few weeks, but right now it doesn't have a high volatility. 

I just took a look at Amazon's options and work out an interesting strategy that you might be interested in. As far as I am pretty sure (I know, that's not the strongest reason, but based on the standard deviation and absence of some significant news coming next week) that Amazon will not go lower than $570-580 by the end of next week, but I am also pretty sure that the stock will not go higher than $680-690 just because the highest price they've ever reached was $675. I think that they can surpass this level, but in mid- or even long-term. 

So, the strategy is a short strangle: sell $665 calls for $10.5 and $600 puts for $14. Expiration date is April 29. Your PL will be the following:

I think that it could be a good chance to earn some money in a week. Let me know what you think about this one.