Amazon stock hits six-month high as traders flood into bearish bets
Amazon Inc. (AMZN) shares have climbed to a six-month high of $270.45. The surge in price has drawn massive interest from traders, with unusually large volumes in options contracts. Institutional investors are now focusing heavily on short-term bets against the stock. Trading activity in AMZN options has surged, particularly in put contracts. The $275.00 put expiring on May 4 saw nearly 100 times its usual daily volume. Another key contract, the $272.50 put expiring today, traded almost 25,000 contracts alone.
The $272.50 put carries a midpoint premium of $1.79, setting a breakeven point at $270.71 for short-sellers. While most activity centres on puts, only one call option tranche has shown unusually high volume. Hedge funds and institutional speculators appear to be driving the spike in demand for these short-term bearish positions. AMZN’s stock rise has triggered a wave of speculative trading, with investors weighing both upside and downside risks. The concentration of activity in puts suggests a cautious outlook among many large traders.
The sharp increase in AMZN’s share price has led to record options trading volumes. Institutional investors are heavily favouring puts, particularly those expiring within a single day. This surge in activity highlights the stock’s current volatility and the high stakes involved in short-term trading strategies.
