Watch close below 30m line - could drop more into close, Friday
I like to trade weekly options on AMZN, on Thursday and Friday, because theta value is much lower. Even one contract can keep risk low for a potentially high reward. For example, you can see on a 5min chart how this morning's consolidation broke lower. I bought a 2150 put for $3.60 and sold it for $17. If a candle closes below this yellow line and there is broad selling in market, AMZN may get back to 2080-2090.
In my early years of trading, I got burned too many times by trading AMZN on Fridays. I rarely hold overnight due to risks. If you are learning, I suggest you establish the 30m and daily trend, and support/resistance points, but trade on a 5m chart. Use very few contracts, even one is okay, and identify your profit target and stop and be firm with them.
In my early years of trading, I got burned too many times by trading AMZN on Fridays. I rarely hold overnight due to risks. If you are learning, I suggest you establish the 30m and daily trend, and support/resistance points, but trade on a 5m chart. Use very few contracts, even one is okay, and identify your profit target and stop and be firm with them.