Today's Amazon earnings will be closely watched, as factors such as the recently introduced 10% sales tax in California could provide problems for the company's bottom line. Increased expenses have been another factor, so there is potential for the world's largest retailer to see some disappointing news with its next earnings report. In addition to this, the figures will give traders some key insights into the holiday spending behavior of online consumers. Amazon is expected to post profits of 27 cents per share, with $22.26 billion in sales for the fourth quarter ended. Figures for this period for the previous year showed earnings of 38 cents a share with revenues of $17.43 billion.
Traders can look for hourly PUT options in AMZN if prices fall through 262 (negative outcome). If a positive surprise is seen, traders can look for hourly CALL options in AMZN if prices break 278 to the upside.
Good Idea Richard! The Amazon looks quite stable but the earnings could surprise the public so be careful when trading AMZN. The price already dropped to 268 but is still far from 262 to trigger your put option.
It will be without surprises I think. Amazon is pretty stable company..
Market surprises are seen in "stable" companies and economies on a daily and weekly basis. Surprises relate to analyst projections, not the companies themselves. It is actually much less common for estimates to be correct.