By Dan Darrow

October 27th, 2022

Intraday Update: AMZN, HYG

Indices are mixed in afternoon action, with Tech names notably weaker. It will be another busy after hours of earnings, and the PCE report is due out tomorrow morning, so Friday should be volatile. There are a couple of positions that need to be managed before the end of the day:

  • AMZN rallied earlier this week to give a shot to lock in some money on the Nov04 call spread, but the stock has turned sharply lower the past two sessions. While it should be a sizable mover on earnings today, the Nov04 $121 - $123 call spread was a ramp into the report play, and the remainder of the trade will be closed before the print. SHOP (another open position) should move in sympathy with AMZN, and we can also look for a fast setup post-numbers on it.
  • HYG is at the stop level. The ETF's bounce failed at the key 50day sma yesterday, but it is grinding above it today, and having removed near-term resistance, there is a path to ~75 now. The Nov18 $70 - $68 put spread roll down needs to be closed before HYG can build more momentum to the upside.

Open Positions

* The following Open Positions pertain to the Options In Play trade ideas from this and previous editions. Disclosure of the Trader Co-Author’s actual portfolio holdings, as of the date of each publication, is made below under "Trader Author Portfolio Holdings.".

Trader Author Portfolio Holdings

**As of the date and time of publication