AMZN and BZH

Here are a couple of stocks I am looking at *CAUTIOUSLY* for a possible trade -

AMZN - July Bull Put Spread using 60 as a good support. AMZN has been a rocket in this bull market and is most likely way over priced, but for the time being I do not see a slow down in the next month. IS the summer slump not coming? Not sure if the year before an election has anything to do with it but the slump should have started and it seems we are just picking up steam and this one has good solid support at 60. Although the technicals are not saying that the rise will continue it is difficult to assess these technicals with the way AMZN has been rising. We would be looking at a .30 to .35 credit for the July 60/57.5 Bull Put spread.

BZH - July Bear Call Spread using 40 as a good resistance at the 200 dma. The Housing Industry may have seen the bottom but many people are claiming not in any case there is still weakness in the Housing Sector so even in this bull trend I find it difficult for BZH to break the 200 dma at 40 in the next few weeks. So we would be looking at a .50 credit for the July 40/45 Bear Call spread.

Neither of these trades are set in stone and I will continue to watch these two stocks and make a decision next week. We are 50 days away from July expiration which is entirely too long to be in a trade. If we can get in next week and then close the trade with enough gain prior to expiration I will be happy. These are not the most profitable trades out there right now but they are conservative and thats what I like. So we will check back on these next week.

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