Amazon.com reports after the close on Thursday and margins and revenue generation remain fundamental concerns. Jim Strugger, Derivatives Strategist of MKM Partners, tells TheStreet’s Jill Malandrino the options market is pricing in roughly an 8% move, and while that is a big move, it is inline with the past eight quarters. Strugger points out Amazon.com is trading around its 2013 base and was down 25% in 2014 and likes getting long the stock into earnings. One way to express that opinion is by purchasing the February 300/350 call spread, risking about $12, while creating a 100% risk-controlled, 3-to-1 payoff potential.
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