New all time high
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I’ll never forget a line from a tech podcast I listened to, I can’t remember which one but one of the big respectable ones.
They had a guest who was saying that he views his Amazon shares as his luxury pension fund SOLELY because one day the government is going to have break Amazon up into… Amazon Health, Amazon Retail, Amazon Logistics, Amazon AWS, Amazon Air Freight etc etc… and he’ll suddenly end up with shares in a pile of successful companies.
Of course, I’m not sure how many of them would actually thrive without the golden goose of AWS, but it was an interesting theory.
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feeling good about earnings…
growth in AWS and advertising .
people saying maybe dividends… that Im not so sure on yet
- AWS grew 17%
- Advertising grew 24%
- 3p Seller Services grew 16%
- Subscriptions grew 11%
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Could you chat through what that trade means in laymans terms please?
Call option contract
each contract = 100 shares,
10 x 100 x $10.60
I efectivly control 1000 AMZN shares
I expect by the 17/1/2025 AMZN to trade at $200 or over, at which point I have the option to buy 1000 shares for $200 each or sell the contracts.
can sell the contracts on at any point, as of close yesterday they were worth £13 each
if by 17/1/2025 AMZN stays below £200 the contract will expire worthless and all money is gone
Option profit-loss diagrams are probably the easiest way to understand the payouts. The X axis is Amazon’s share price in January 2025, the Y axis is your profit.
The blue line is how this call contract pays out and the red line would be how owning a share would payout for comparison. Because the losses are capped for the call option you can buy a lot more shares with the same amount of cash.
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Thanks. So your maximum downside is $106.
But if the shares reached say $210 then you’d be looking at a gain of c$10000 (less your $106).
Interesting. Sounds too good to be true though?
Edit:
When did you buy these contracts?
Am I misunderstanding this?
If each contract of $10.60 was 100 shares. Would breakeven not be something like $200.106?
Or is it $10.6 per share rather than per contract?
each contract is $10.60 x 100 so $1060.00
total for that trade was $10,600.00
at close last night it was around $13,000.00
potential loss is $10,600.00
potential profit is unlimited
or could have brought 1000 AMZN shares at $175.00 … 
but I dont have that much free cash 
…
this where they have been trading , when stock went to about $189 they were £19 a con
I have lost lots in the past tho… jusy and FYI
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It’s not too good to be true. you need to understand the risk. He could lose his whole stake if the price moves the wrong way (and he deosn’t sell early).
There is an expiry date so you can’t just hold and wait for the price to come back up like you could if you bought the shares.
You can make good money with options, but you can also lose a lot if you get it wrong or don’t understand the trade you are getting into
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I’d misinterpreted the price as being $10.60 per contract. $1060 per contract is a whole different ball game.
Everything is lining up … are we ready for a big move ?
Bouncing between the Anchored VWAPs
A bounce off the 325MA
MACD cross
RSI going up
small volumes… .people are geting ready
to the moon !
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Agree with you here it feels as if it has the most room to pop from the tech group.
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