• Chart of the Day: Amazon.com Inc. (AMZN)

    by  • January 10, 2013 12:11 pm • Quick Hits, Tony Venosa's Chart of the Day • 0 Comments

    Today’s chart is of Amazon.com Inc. (AMZN) which operates as an online retailer in North America and internationally. It operates retail Websites, such as amazon.com and amazon.ca. The company serves consumers through its retail Websites and focuses on selection, price, and convenience. It also offers programs that enable sellers to sell their products on company’s Websites, and their own branded Websites.

    Ticker:  Amazon.com Inc. (AMZN)

    What I Am Looking At:

    • DJ Internet Index Fund (FDN) has been a strong performer on a year-to-date and year-over-year basis
    • AMZN also outperforming, up over 5 percent year-to-date
    • Recently broke out to close at an all-time high, $268.46
    • Currently backtesting  the ascending triangle breakout from 1/7 (see chart)
    • Both the 10-day and 50-day buy-to-open put/call ratios are both showing extreme pessimism suggesting option players have been betting against rallies in shares
    • Peak put open interest for the January series resides at the 260-strike price which coincides with the lower gap area could be supportive
    • Implied volatilities have been trending lower
    • Short interest has been steady and represents about 2.5 percent of the float
    • 8 out of 21 analysts rate the shares a “hold”
    • Reports earnings on January 31st, unconfirmed

    Trigger:  Three possible entries: Buy the backtest of the ascending triangle breakout, buy a possible gap fill from 1/7, or buy a test of the uptrend line (blue)

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    Tony Venosa, CMT is a Senior Options Strategist and works on the trading desk at Schaeffer’s Investment Research. He joined Schaeffer’s in 2010. He has worked in the finance industry for over 15 years. He began his career as a trading assistant in Chicago on the floor of the Chicago Mercantile Exchange. He later moved upstairs and worked as a commodities broker on both the retail and hedging side. He left the brokerage industry to begin his trading career as a proprietary equities trader at a Chicago firm. In 2000, Tony moved backed to his hometown and continued trading his personal account. He later went on to earn his Chartered Market Technician designation. He earned a B.S. in Finance from Miami University. Tony’s main focus is short-term directional option trading.


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