Shares of Amazon.com, Inc. (NASDAQ:AMZN) closed 1.55% lower on Monday. The stock has so far gained over 48% since the beginning of the year. In comparison to some of the other tech stocks, the retail giant’s shares have shown relative resilience in the recent market correction in the aftermath of the Federal Reserve’s June policy announcement. The central bank had indicated it could hike rates by another 50 basis points this year, sparking fears of a potential downturn.
Under these circumstances, here’s a look at the options market outlook to figure out crucial trading levels for the stock:
1. Resistance: Shares of Amazon closed at $127.33 on Monday. Options expiring on Friday show significant open interest accumulation at the $130 Call strike, indicating professional traders may not be expecting the stock to breach this level on the upside this week. If the stock manages to cross this level, the $133 mark could act as the next level of resistance.
2. Support: Options data show that there is relatively higher open interest accumulation at the $125 Put strike. Although the open interest numbers are not convincingly high, they indicate traders may be considering this level to be the first line of support. The lack of any high conviction open interest numbers at other Put strikes could indicate option sellers may be maintaining caution on bets involving Puts in the current environment.
Open interest numbers only provide a fair idea about support and resistance levels. Any major news break or a macro event could lead to significant movement in stock prices and cause a subsequent shift in open interest numbers.
Produced in association with Benzinga
