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Trades Amazon Options

When you don’t know where the market will go, especially when the GDP number confused you even more, this is where options come into play. A put/call spread could limit your loss but it will also limit your profit.

After Amazon’s earning was announced, the stock dropped by about 40 dollar. Let’s say that you think this is only temporary and you want to take opportunity to trade, you can sell an out-of-the-money put spread.  So for example, you can sell 280 put and buy 270 put to limit your loss.