AMZN is approaching its mid-term support zone around $2890. Due to the high cost of options and liquidity during such a volatile time, going with shares to trade and limiting options to hedges and defined-risk options trades should be preferred.
Trade Idea:
Enter around $2925 for the $3075-$3100 before a potential rejection of the 200 SMA. Stop loss below $2815 for a ~1.33:1 Reward-Risk Trade.
There is also a decent probability that it could continue to rally above $3100 but taking profits at that level is a necessary for good risk management.
Trade Idea:
Enter around $2925 for the $3075-$3100 before a potential rejection of the 200 SMA. Stop loss below $2815 for a ~1.33:1 Reward-Risk Trade.
There is also a decent probability that it could continue to rally above $3100 but taking profits at that level is a necessary for good risk management.
Trade active:
Profit Target 1 Reached. Take Profits.
Trade closed: target reached:
It continued to rally up $225 above $3100. Close trade for $400 profit.