Bull & Bear: Amazon.com

Shares of Amazon.com AMZN are trading lower on the session by 0.47%, at $212.48. With earnings scheduled for after the bell today, you have to wonder where they could head next… Bulls: Bulls will note that Amazon.com is trading above the 50-day and 200-day moving averages, both of which are upward-sloping. The stock has also been consolidating above the 20-day moving averages since the beginning of July; shares appear spring-loaded and ready to jump higher. Bulls will also note that EPS estimates have come in sharply over the past two months, which could pave the way for a large EPS beat. Call volume has largely been outpacing put volume for the past few weeks as well. A bullish trader could buy the August $220/240 call spread for a net debit of $4.78. Bears: Bears will note that the marked discrepancy in valuation. Amazon.com is trading at 55.78x next year's earnings, with a PEG ratio of 1.87. This is at the upside of what money managers are will to pay for growth. Bears will also note how far above the 200-day shares are trading, which could lead to mean reversion. A bearish trader could buy the August $210/190/170 put tree for a net debit of $6.02. Amazon.com, Inc. is a customer-centric company for three primary customer sets: consumers, sellers and enterprises. In addition, the company generates revenue through other marketing and promotional services, such as online advertising, and co-branded credit card agreements.