Amazon stock falls ahead of earnings report, with options traders not expecting too much action after results

1 month ago 18
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Shares of Inc. AMZN, -1.01% fell 1.0% in afternoon trading, as investors braced for the ecommerce and cloud giant's second-quarter earnings report due out after the closing bell. The stock has declined the day after the past three earnings reports were released, and after eight of the past 11 reports for an average decline of 3.9% during those days, according to data provided by FactSet. Options traders aren't expecting too much action in the stock after the earnings report. An options strategy known as a straddle, which involves the simultaneous buying of both bullish options (calls) and bearish ones (puts) with the same "at the money" strike price, implied a post-earnings move of $115.61 in Amazon's stock price in either direction on Friday, compared with an average move of $136.55 after the past 12 quarterly reports, according to data provided by Option Research & Technology Services (ORATS) principal Matt Amberson. Amazon's stock has gained 3.5% over the past three months, while the S&P 500 SPX, +0.43% has advanced 5.0%.

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