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Amzn & Grmn
Any one have ideas where these stocks may be headed, both seem to have come down in the last couple of weeks. Mainly thinking of writing Naked Puts & or Covered Calls. Premiums seem to be good for April. I realize that Naked puts in a bear market may not be so desirable I would also appreciate any other ideas on the present market. Rightly or wrongly i tend to be a big fan of generating premium.
Johnno
Best Answer
4085 points
EthanR answered one year ago …
I really like AMZN here at 64. It looks to me like RSI has already turned up from oversold levels, and stochastics and MACD appear poised to do the same. There was recent support at 61.20 on two consecutive days. Whenever you get a chance to buy a quality stock at a substantial discount, that is a terrific thing, and AMZN has come down about 34% from its end of 2007 highs. One could argue that sales could come down in a recessionary period, but hasn't Wall Street already factored that into the current price?
I am not quite as enamored with GRMN, which has been cut in half since last October. I see them as basically a one product company with a lot of competition. After a fizzled rally which double topped around 70, the stock has declined and continues to make new lows. Also, the MACD is turning down, a negative for sure.
Answers
314 points
Ifly answered one year ago …
If you want to generate a premium by selling a put option why not at least mitigate your risk by buying a lower strike put as well to create a put credit spread. At least if you are wrong you will have a limited loss. This will also alleviate vega risk as well ( loss due to increase in volitilty)
Cheers
Ifly
