On That Amazon

• Posted by Adam Warner
• on December 13th, 2009

So just played around with a Kindle for the first time. Awesome. Might start reading some “so-called” books now.

Anyway, interesting chart juncture here in the AMZN. Kind of riding along the 20 Day MA, which I would also call the middle line in the Bolinger Band Chart if I posted that one.

Options volatility is roughly 40, modeslty off the lows in the 35 range. And low and behold, it’s pretty fair relative to realized volatility. 10 Day HV is currently near 40, though that’s the high end of the typical range over the past few month’s (excluding the one-off earnings blip).

If you’re into the whole “Panic in the Streets” meme from Bloomberg, I’d sooner buy gamma in something like this situation than in an index. Not saying it WILL happen, but you have some real air under 130 to the 50 day MA, and then air again on that old gap.

I’m not playing it that way as I’m pretty flat gamma here, and nothing past December. But if I do anything into January, will probably structure it so I’m net long puts down lower.

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