by Houghton and Atkeson 07/22/08
It's a jungle out there in the market, especially when you're doing down the Amazon (AMZN).
AMZN is currently trading at about $66 per share and the company is scheduled to report earnings tomorrow after market close. Normally, we do not comment on trading that occurs this close to earnings reports as often it is a contrary indicator. But we are unable to shake off the fact that we're seeing buyers of about 5,000 AMZN Aug 45 Puts (ZQNTI) for up to 35 cents.
In the wake of Google (GOOG) and Apple (AAPL) dropping hard on their earnings reports and outlooks, this apparently speculative trade appears to signal a strong negative bias to the market's likely reaction to AMZN's report.
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