Options Market Sees A 6% Move For Amazon After Earnings

Jim Strugger of MKM Holdings spoke on Bloomberg Markets about a bullish options strategy in Amazon.com, Inc. AMZN.

He said that the company is going to report earnings on October 27 and the options market is implying a move of 6.2 percent for the event. Historically, the stock has moved almost 9 percent on earnings.

Related Link: Amazon Should See 29% Revenue Growth

Strugger believes that Amazon is going to continue to trade higher and he wants to buy the December 860/910 call spread for $14.90. The trade breaks even at $874.90 or 4.39 percent higher from the current stock price and it can maximally make $35.10, if the stock moves to $910 or higher.