Andrew Keene's Amazon Options Trade

Andrew Keene of AlphaShark recommended on CNBC's Trading Nation a bullish options strategy in Amazon.com, Inc. AMZN. He thinks the stock is heading towards $1,000, but he believes it's possible that we're going to see a moderate pullback first.

On the daily chart, he identified a technical support at $860 price level and he wants to use options to buy the stock, if it pulls back to that price level. Keene wants to sell the May 860/850 put spread for a total credit of $2.50. If the stock stays above $860 at the May expiration, Keene is going to collect the premium. Below $857.50, he starts to lose money and he can maximally lose $7.50.