What prompted Jon Najarian to buy Amazon Call Options today? – Amazon (AMZN)
ISI Evercore Analyst Mark mahaney appointed Amazon.com Inc (NASDAQ: AMZN) its best internet stock for 2022 on Tuesday.
Many expect a strong 2022 for the e-commerce giant, but Market Rebellion co-founder Jon najarian still believe there is room for the upside before the end of the year after seeing unusual option activity in the stock.
Someone bought 11,000 of Amazon’s $ 3,450 call options expiring at the end of the week, Najarian said Tuesday in CNBC’s “Fast Money Halftime Report”.
He told CNBC he decided to buy Amazon calls as a result of the massive options trading.
“When they buy 11,000 of something this big – that’s 1.1 million shares of a $ 3,500 stock – that’s why I got into this,” Najarian said.
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And after: He also said he plans to continue to sell options against his position in equities.
“By selling these calls against your long positions on Amazon, you can easily factor them into the low 20% returns,” he said.
He noted that Amazon’s returns have been mediocre in 2021, trading up about 5% year-to-date. However, he reiterated the importance of selling calls to increase returns.
“Having one of the most stellar stocks of any S&P 500 and then being able to improve it with another 15% or 20% upside just by selling those bullish calls, that’s why we’re playing this game.” , Najarian said. .
AMZN price action: Amazon traded as high as $ 3,773 and as low as $ 2,881 over a 52 week period.
The stock was up 0.73% to $ 3,418.22 at the time of publication.
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Photo: Courtesy of Amazon.