Now is the time to buy puts because we should be heading into the teeth of a 3rd wave down. Remember that 3rds are generally the strongest wave and never the weakest and wave 1 already showed us a powerful move from $410 down to $285 before bouncing. Also, since wave 2 was a vee, wave 4 will likely be sideways thus giving you more time to think and watch things before cashing in. The safe play is to pay up for the 2016s. I think the 160s will easily be in the money by then.
160.00 | AMZN160115P00160000 | 1.78 | 0.00 | 1.37 | 1.80 | 16 | 106 |
At the other end of risk tolerance (very risky), a fair bet would be to get some Oct 2014 $250 puts. Yes, this is closer in than I usually like to play it but talk about an asymmetrical bet. Pick up a nice bundle of these at 50 cents and then let's talk in October when they are $3, perhaps more.
250.00 | AMZN141018P00250000 | 0.48 | 0.07 | 0.44 | 0.51 | 5 | 1,076 |
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