11/8/2013 FRI

Google Inc. and Amazon.com Inc.

NASDAQ:      GOOG and AMZN

       Both stocks hit yesterday AMZN down to 343.56 a loss of - 12.62 on the day. GOOG was down -14.80 only a -1.45% loss, but more significant is that it is trading below the 1015- 1020 level which was acting as support for the shares the past couple weeks. In both cases it presents cheap trades going into tomorrow’s weekly expiration.

     

      With regards to both stocks they seemed to have picked up a little momentum in a jittery market. GOOG offers an inexpensive risk reward scenario in a stock that could sell off 20 to 30 points or more just on the basis of failing to hold at the 1000 price level.

AMZN

Look at buying the 340 Nov weekly puts for 1.00 or better look at buying the 340/335 weekly put vertical for .65 or better.

Open Int. (est.)     strike             NOV 13 Weekly (1)

330                                 1,100

335                                 1,960

340                                 2,670

345                                 2,155

350                                 3,775

GOOG

Look at buying the 1000 Nov weekly puts at or around for 1.00 or better or look at buying the Nov weekly 1005/995 put vertical for 1.50 or better if the stock opens higher.

Open Int. (est.)     strike             NOV 13 Weekly (1)

975                            360

980                            800

985                            850

990                         1,240

995                         1,920

                                  1000                         3,890

                                  1005                         3,000

                                  1010                         5,370

*Disclaimer: This is not a recommendation. All trading entails risk. Anyone employing any strategies and having limited knowledge of options trading should consult with a FINRA licensed professional.