Front-run stock-moving headline news… before it makes headlines — LIVE at 2:30 PM ET
Amazon (AMZN) is already down more than 20% off recent highs — and if it falls another 20%, I’ll be thrilled to own shares. That’s not a hope-and-pray approach…
It’s an intentional, structured trade with defined risk, solid premium and a long-term bullish thesis behind it.
Here’s how I’m setting it up — and why I’d be happy to take assignment if we get a deeper pullback.
A Deep-Income Setup With Time on My Side
The trade is a put ratio spread using June 20 expiration. I’m buying the 155 strike put and selling two of the 150s, taking in a net credit of $1.03 per share. That gives me a 95% chance of profit if AMZN stays above 150 — and I get paid up front for the risk.
If AMZN lands in that 155 to 150 zone at expiration, I trigger what I call a “profit trap” and get a bonus of up to $5 on top of the credit I collected. If AMZN falls below 150, I’ll be assigned shares, but my break-even drops to $143.97.
That’s more than 40% off the all-time highs — I’ll take that!
This isn’t a shot in the dark. AMZN’s fair value is estimated around $357. Its price-to-earnings is reasonable compared to mega-cap peers, and the growth story is still intact.
AWS keeps expanding. Logistics, AI, robotics — all of that is part of the Amazon machine.
This isn’t just a consumer stock anymore. It’s a diversified, global tech and infrastructure business with long-term upside.
Why I’d Gladly Take the Shares
If I get assigned, I’d own 200 shares at 143.97. I’ve got the cash flow to support that — even across multiple accounts — and I’m fully comfortable taking the risk.
The plan from there would depend on price action.
I’d look to reduce my cost basis further with covered calls, or turn it into a collar if volatility spikes again. And if AMZN rallies back toward prior highs — even halfway — there’s plenty of room to profit.
This is what income trading is all about in choppy markets. I don’t need to call the bottom or force a direction. I just need defined setups, high odds and a long-term edge.
If I can make money on the trade, take assignment on a quality name and still have room to manage the position, that’s exactly the kind of trade I want in my portfolio.
Simple. Calculated. Repeatable. I’ll see you in the markets.
Chris Pulver
Chris Pulver Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. How You Can Get Ahead of the Mainstream Media…
I’m hosting a LIVESTREAM today at 2:30 p.m. ET today, March 21, where you’ll see all the details you need to start front-running stock-moving news before it hits the headlines…
And more importantly, you’ll see the No. 1 stock that’s flashing the “News Notice” signal!
