What Trends Are We Seeing In Options for Amazon?

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July 25 (Bloomberg) -- Bloomberg's Eugene Miculet discusses what could be some of the plays for Amazon with Dominic Chu on Bloomberg Television's "Market Makers." (Source: Bloomberg)

It is time for today's options update.

Amazon.com will report after the bell so what trends are we seeing an option stacks joining us is our analyst.

Amazon as fund to cover as a journalist because it goes so far up or down.

What exactly is the historical basis?

Amazon.com is interesting when it comes to earnings.

We have looked at the last eight quarters of earnings announcements and we found that amazon stock price moves anywhere between 4-1% m1 = single day.

-- 4-15%. for the results tonight, we project a one-day move abruptly 5.8%. it seems to be on the lower end of what it typically has done over the last eight quarters.

That's exactly right that we may not see much volatility.

Options to not just tell us what the implied move of stock will be, the option value as an interesting trends.

We have a graph of that for the relationship we are showing is the relationship between implied volatility and demoralize the volatility and explain to us what that means.

The implied volatility derives from option prices.

Many people look at it as a forward-looking volatility.

You want to compare that to the realized volatility, what actually happens in the market.

What do we see and amazon?

There's an interesting trend as we look at the implied volatility.

Back in 2012, when amazon.com announced the q3 results, it was around 48. that volatility has come down substantially in the last couple of quarters.

Now we are at about 36. volatility is lower than what we have seen.

What are the most active options today?

Yesterday was the most active options out of money calls and 10-15%. today, we see more volatile options in the call options.

These are expiring tomorrow and next week.

A lot of shorter-term bullish plays on amazon.

Thank you for joining us.

That does it for "on the markets." "lunch money"is next.


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