Shares of Amazon.com, Inc. (NASDAQ: NASDAQ:AMZN) Friday lost close to 3% to settle at $2,887.00. Last month, the Board of Directors of the company approved a 20-for-1 split in June.
On CNBC’s “Options Action,” Tony Zhang said there were risks ahead of Amazon’s earnings announcement. He recommended buying a put vertical spread.
The company is scheduled to report earnings on Thursday, April 28. Check out other stocks making moves in the premarket ahead of earnings this week.
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Mike Khouw of Optimize Advisors agreed with Zhang’s recommendation of put vertical spreads on Amazon and suggested iShares Russell 2000 ETF (ARCA: IWM). “There are some [stocks] that are indeed so bad that they’re good,” Khouw stated.