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Kevin Kelly of Recon Capital Partners suggested on
Bloomberg Markets a bullish options strategy in
Amazon.com, Inc.AMZN.
He has recently read a research report that claims that
Amazon.com, Inc. may have increased its Prime users 35 percent year over year and it now has 54 million Prime members. Kelly finds this important because Prime users spend on average $1,100 and non-Prime users spend only $600 on average.
To make a bullish bet, Kelly wants to sell the January 560 put and buy the January 600 call for a total cost of $14.50. The break even for the trade is at $614.50 or 2.2 percent higher. He would have to buy the stock, if it drops below $560 at the January expiration. The company is going to report earnings on January 28.
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