Friday, April 25, 2014 (AMZN) - Earnings Review: Stock Gaps Off of Earnings; and We Knew it Yesterday.

AMZN is trading $306.86, down 9.0% off of earnings with IV30™ down 22.2%. The Symbol Summary is included below.

Provided by Livevol

Yesterday I posted this article:

4-24-2014 (AMZN) - Earnings Preview: Here's What the Option Market Reads About the One-day Move. Do You Agree? I don't...

This was the takeaway, was simply what the title declared: I though t the option market had underpriced volatility.  Much like AAPL yesterday, it seems the option market did not reflect enough risk in this event.

That AAPL review is available to read here:
Apple (AAPL): Earnings Review: How the Option Market Blew It... And We Knew a Week Ahead of Time.

The option market priced a stock price range of [$313, $357] . As we can see, the stock is well through that range. Let's turn to the Options Tab as of right now.

Provided by Livevol

As of the first post the $335 strike straddle was worth $23.  Today that straddle is worth ~$28.15 to parity.

This is trade analysis, not a recommendation.

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1 comment:

  1. Thanks a bunch for sharing about (AMZN) - Earnings Review: Stock Gaps Off of Earnings