Another Credit Spread

Here’s a credit spread trade for you from blogger Brent Archer. It has a little more risk due to earnings coming out on Amazon on the 24th, but he explains this well in his post.

The two problems I do have with this trade are 1.) too much time involved, in his defense he can not use the May options because there is no credit available at the level he wants you to place the trade. 2.) There is not enough credit in the July options to make me want to hold it that long to eat away the time value. We would be looking at a .15 credit on a $2.50 spread or about .25 on a $5 spread. We are looking at a 6% gain in 3 months time. Not the exact type of trade I would be looking for but he makes a good argument as to why this would be pretty probable to be a winning trade.

Check out his post here..BloggingStocks

amazon, credit spread, spread trade