How To Trade Amazon Stock Today

To put together a bear put spread, you'll buy one AMZN put and sell another AMZN put, both expiring on the exact same date. Make sure the put you buy has a higher strike than the put you sell. The premium you collect on the put you sell offsets your cost, slashing your entry price and risk.

Here's a spread that looks good to me:

  • Buy an AMZN Sept. 17 $3,350 put for $114.
  • Sell AMZN Sept. 17 $3,250 put for $84.

In one fell swoop, you've slashed your cost and risk to less than you'd pay for one AMZN share, and you're set up to make a tidy profit as Amazon declines.

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Disclaimer: Any performance results described herein are not based on actual trading of securities but are instead based on a hypothetical trading account which entered and exited the suggested ...

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