Sunday was a big day for movie and television fans as the 67th annual Emmy Awards took place. It also proved to be  a big day for Amazon. The online retailer took home 5 Emmy Awards due to its original show “Transparent”. In honor of the Emmy Awards the retailer took home, Amazon will be offering a one day sale on its Prime membership. According to the announcement made on Tuesday, Amazon will be offering the Prime membership for $67 for the first year beginning at midnight on September 25th. The deal will last for 24 hours. Today, we'll talk about how Amazon Prime is shooting Amazon's stock upward, why investors are excited about the deal, what to expect moving forward, and how binary options traders can profit from the trends.

Amazon Prime Is Far More Profitable Than It Seems

Amazon Prime generally has a price tag of $99 per year. When I first looked into the service, I couldn't imagine how it would become profitable; however, I recently came across data that shows just how profitable the service is. Here's how the low cost of Prime actually generates massive revenues…

Amazon Prime members receive free two day shipping on items covered by Prime; which is what actually leads to the profits. Ultimately, members sign up in search of free shipping. As a result, more and more manufacturers have started to jump on the boat, offering free two day shipping to Prime members. With more products eligible for free shipping with prime, more consumers sign up for the service. Because the service offers more reach to consumers, even more manufacturers sign up; ultimately creating a revolving door of new consumer sign-ups followed by new manufacturer sign ups. As a result, Amazon now has an estimated 80 million Prime members around the world. However, the amount of members doesn't prove profits, but this does…

Statistics show that Amazon Prime members shop Amazon often. In fact, recent data suggests that 49% of all first year members and 68% of all four year members spend at least $800 annually shopping on Amazon. Considering that Amazon Prime has an estimated 80 million members, that equates to quite a bit of money at the end of the day.

Why Investors Are Excited About The One Day Deal

Amazon has offered one day deals in the past, and when they do, they tend to see an influx of new Prime members. Considering the amount of money that Prime members spend on Amazon, it only makes sense that investors would be excited about the one day deal that's coming. Ultimately, the deal is likely to drive yet another influx of sign ups; which will equate to larger revenues down the road.

What We Can Expect To See

The deal will be happening on a Friday; and Amazon won't be making any announcements then. However, I'm expecting to see an announcement that the deal went off without a hitch sometime during the weekend. This is likely to cause quite a bit of investor excitement; leading to gains on Monday.

How Binary Options Traders Can Take Advantage Of The Trends

First and foremost, you'll want to be available at market open on Monday to trade. Gains from these types of things tend to happen in the morning and taper off throughout the day. Therefore, in early morning, look for call option opportunities. As the mid-day reversal starts to hit, start looking for opportunities for profit from put options.

What Do You Think?

Do you think that the Amazon Prime deal will prove to be a catalyst on Monday? Why or why not? Let us know your opinion in the comments below!