AMZN earnings hedge

I am long AMZN from 165 and I would like to hedge for the next few days.

If the hedge holds to the election, even better.

I was thinking of selling 1 atm put 1NOV and buying 2 otm put 8NOV.

Comments and suggestions on strategy are appreciated.

 

Don't bother. If you're uncomfortable with your position, sell shares until you are.

 

just sell the atm put 1NOV maybe you'll get lucky and be assigned. amzn isnt going bust

 

I am comfortable owning AMZN for now, and would sell the strategy while keeping the shares if it dropped.

Also, the idea was to have nearly x2 options in ratio to shares. It should cost around 3$ for 100shares.

Do you think those 3$ are wasted as a protection?

 

I own amzu ....

It's all about AWS. If this fails in the earnings tonight this stock is going down hard.

Many are focused entirely on Capex spending and their AWS margins.

 

i think 1x2's are very tricky to trade as a hedge. If you don't have a clear view on how volcorr will work, you don't know how and if it protects.

 

I hope you took my advice

 

I held the shares and it's all good so far!
Thanks

 

Backspreads are inferior into events. Diagonals as well. Edge on terms but both series are going to drop as it's a binary event. If hedging were cheap... you wouldn't need to hedge.