Amazon Stock Stuck in Rut, Trader Sees Range-Bound Trading Until Next Earnings Report
Amazon's stock price has been stagnant since its earnings report on July 30th, and trader Mike Khouw believes it will continue to be range-bound until the next quarterly earnings report.
The tech giant holds the number one spot in the Fortune 500 list, recently displacing Walmart. In the 72 years since the creation of the Fortune 500 list, only three companies before Amazon occupied the top spot.
Despite its impressive growth rate, with estimated revenues for FY 2026 exceeding $828 billion and a YoY growth rate of 15.5%, Amazon's stock trades at a near-market multiple of just 22x FY 2027 adjusted EPS estimates of $12.35/share.
Khouw suggests that investors consider a 'jade lizard' strategy, which involves selling a short strangle (short put and short call) combined with a higher-strike long call, to bet on Amazon's stock remaining range-bound until the next earnings report.