AMZN
Amazon.com
Rating 4.5 / 5 Recommendation Open trade

Credit put spread analysis · · Strong setup

IV Rank
16
Implied volatility percentile
Trend
0.46
Long-term trend score
Safety
7/8
Quality checks passed
Drop
-5.5%
Day 3 of drop
Reversal
Doji
Day 4
1Y Change
8.6%
Trailing 12 months
Earnings
Clear
No event in window

AI analysis

The recent 5.55% drop in AMZN presents a strong opportunity for a credit put spread. The stock has been on an upward trend, gaining 8.6% over the past two months, and is currently in a Doji reversal pattern on day 4. The favorable Safety rating of 7/8 and IV of 16% support the idea of opening a position.

For an OPEN recommendation with a 45-day expiration, consider selling the $190 put and buying the $180 put, resulting in a net credit of approximately $3.50. This setup offers a good risk/reward ratio, considering the spread width is 5% of the current stock price ($206.96). Moreover, the selected strikes are well within the 5-15% and 5-10% guidelines for sellStrike and buyStrike, respectively.

Although the stock has experienced a significant drop, its strong underlying trend and high rating indicate it might continue to recover. Therefore, this credit put spread should be executed quickly to take advantage of the reversal signal.

Recommended credit put spread

AI-suggested setup based on the latest screen. Expiration Mar 12, 2026.

Sell
$190.00
Short put (collects premium)
Buy
$180.00
Long put (caps risk)
Width
$10.00
Estimated credit
$3.50
Max risk
$6.50
Return on risk
53.8%
Expiration
Mar 12, 2026

For entertainment purposes only. Not a recommendation to trade. Disclaimer.