Event: AMZN misses earning badly
Stock: AMZN
02/02 Price: $41.88
02/03 Price: $35.75
Option: Feb 42.5 Put
02/02 Price: $2.60
02/03 Price: $6.70
Equity % = 0.62/2.60 = 23.8%
Buy 6 contracts at 02/02 close for $1560.
Sell 6 contracts at 02/03 close for $4020.
Your profit = $2460.
Your ROI = 158%
20/20 hindsight ROCKS!
Buying only calls/puts that are "in the money" with budget of ~ $1500.
Assuming you make the RIGHT call. For more information on making the right call, please email GOD!
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