Shares of Amazon.com, Inc. AMZN Friday lost close to 3% to settle at $2,887.00. Last month, the Board of Directors of the company approved a 20-for-1 split in June.
On CNBC's "Options Action," Tony Zhang said there were risks ahead of Amazon’s earnings announcement. He recommended buying a put vertical spread.
The company is scheduled to report earnings on Thursday, April 28. Check out other stocks making moves in the premarket ahead of earnings this week.
Also Read: Jeff Bezos Is A 'Very Smart Guy': Warren Buffett Praises Amazon Founder And What He's Accomplished
Mike Khouw of Optimize Advisors agreed with Zhang’s recommendation of put vertical spreads on Amazon and suggested iShares Russell 2000 ETF IWM. “There are some [stocks] that are indeed so bad that they’re good,” Khouw stated.
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