Amazon's strong fundamentals (AWS growth, rising sales) support a bullish outlook; speaker is optimistic and actively selling puts.
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We will use shares of Nvidia, Amazon, Mara, and Peloton.
Well, in 2020 we saw shutdowns, and shares of Amazon and Peloton, which are two interesting stocks, declined significantly. The shares of these two stocks declined because people were staying at home and ordering Amazon products,
Amazon, during lockdowns, generated $386 billion in sales in 2020. It has maintained these sales levels. In fact, its sales are constantly increasing, more than ever before, thanks to the diversity of its business projects, and its revenues from artificial intelligence, e-commerce, and others. Amazon Cloud Services (AWS) are truly amazing.
In any case, the four companies we will be discussing are: Nvidia, Amazon, Mara and Peloton.
Amazon is ordered by people daily, and other companies rent its cloud services to run their applications. Amazon AWS is the largest and fastest-growing company, and I am very optimistic about it.
Therefore, I am very interested in selling put options on Amazon stock. To be honest, I own $800,000 worth of Amazon stock. We'll see, I'll check out my portfolio later. I have a large stake in Amazon.
Amazon and Google together make up nearly $2 million of my invested capital. Therefore, a large share.
As for Amazon, it made profits of $77.67 billion in 2025. It lost $2.72 billion in 2022, but sales continued to rise and profits returned. What happened there is interesting and unique to Silicon Valley; it's called rapid expansion.
They are willing to spend money on advertising, hiring developers, and anything else necessary to increase the company's revenue at any cost, even if it is unprofitable in the short term.
This makes perfect sense. For Amazon, this made sense for its business, and it is now making huge profits.
Amazon's stock is rising.
Now, Amazon, a very similar story, is a huge company, so naturally the supply and demand price is good. Although it's not as good as Nvidia, the open contracts are great. This is great because it indicates high liquidity.
The same applies to Amazon; Its share is rising, and the green color far outweighs the red color.
Okay guys, let's look at Amazon. This is a stock in which I invest a large amount of money. I thought I had $800,000, but I have $693,000.
As always, I have a variety of stocks, but here I have Amazon at an average cost of $205. When I sell a put option, it is executed, and I thereby raise the average cost, which does not look good when you raise the average cost.
But that's how things are, isn't it? When you make a lot of money and prices are low, you still have to trade, right ? So I'm still thinking about selling a put option. I currently have some covered purchase options, and I also have a "Lip" option from the "Lip" challenge that ended a week ago. I will repeat the experiment next year.
But let's move on to trading Amazon options, and I will show you a put option selling position. We will focus only on Amazon. I will not discuss Nvidia due to time constraints today.
I will be looking to sell a put option for approximately 30 days, i.e., on October 30th. I can also choose November 6th or 20th . Let's extend the trading range a little to November 20th.
So, a put option. I have no problem being very bold on Amazon. I am very impressed with this activity at the moment . I am very optimistic about AWS. I will expand on this option here.
As you can see, there is a small difference between the selling price at 1135 and the bid price at 1155. The difference is only $20 . amazing! Your order will be fulfilled at a price that falls between these two.
That's why you see the price set here at 1145. It's true that the implied volatility isn't very high, but that's the reality. It's Amazon, so it's not the most volatile company in the world, which is actually a good thing if you're selling put options .
In this case, I am showing you a higher delta value, a delta of 40 with less implied volatility , and that is good. This situation is slightly different, but I am satisfied with a higher delta value because the implied volatility is lower and because I am dealing with Amazon, which is a giant company.
I would like to own it at a price of $245 per share. So, when I look at selling a put option here, I would get a premium of $11.35, which is an amount I find very tempting. However, it is not an exorbitant amount in 53 days.
Once the sell option on Amazon shares is executed and the premium is received, well , excellent. Now I have the Amazon stock price I want . Therefore, I can continue to generate income.
To profit from this point, I would simply sell covered call options and begin applying the wheel strategy.
What this channel has said about $AMZN
Invest with Henry has 3 calls on this stock; only the adjacent ones are shown.