Monday, March 26, 2012

$AMZN setup and trade

premiums have come down on this stock because of the sideways action the last month and a half. was hoping for a move down to get close to the bottom of the recent channel.. today broke out of the channel and above the 200 day. if you are looking to enter via credit put spreads on this breakout then keep the spread at / below the 50 day moving average near 185.. so 180/185 would be the first spread id look at.
nothing really has changed for the stock to warrant the big move in my opinion but it now must hold that channel breakout level.. resistence becomes support.. testing and holding the top of the channel near 196 could be another trigger for entry or adding a few lots.