AMZN's e-commerce, AWS and advertising businesses are strong enough that its market cap could reach $6-7 trillion and its share price top $300 by 2027. The flat 6-month chart is fine as a runway. He sold 255 puts expiring Dec 18 for $2,310, break-even about $243.45, happy to own at 255 or below with support under 250.

Okay, here's the second trade, Amazon. 1 hour ago, I sold two contracts on Amazon. So, I'm hoping I can include the trade in this video without having to do it , because I just did it 1 hour ago.

I sold two contracts, and I collected $2,310 in premium.

Now let's discuss Amazon's technical analysis. As I'm making this video , Amazon is up 5% for the day, and the thing I love most about Amazon is that it's actually three businesses.

This includes e-commerce, AWS, and then advertising. These three businesses are so strong that I can see Amazon at a market cap of $6 trillion, $7 trillion, and beyond, just like Nvidia is today.

So, I think Amazon's share price will easily be $300 or more by 2027. So, I would be very happy if I got the opportunity to invest in this stock.

Now, from a technical perspective, I'm looking at the 6-month chart here. I usually use a 6-month chart. The stock is actually just stationary in one place. That's completely fine with me.

The longer the road or runway, the larger the plane can fly. So, when a stock just stays in one place, that's totally fine with me too. I think this actually creates a great opportunity and situation for the stock price to go up a lot in the future.

So, what I like here is that nothing much has happened to Amazon in the last 6 months, which makes it a great candidate for selling put options, and that's exactly why I'm going to add it to my current low price , which is $ 2,310, for the two contracts that I literally just sold an hour ago.

And I basically collected this credit for a total of $2,300. And that's the only trade I'm not actually going to place in this video. But the reason I chose the 255 strike price , which is actually very close to the current stock price , is because I would be very happy to own it at 255 or less.

You can see that the midpoint of the Bollinger Bands here is 253. The stock has really strong support anywhere below 250. So, here's my effective price , whenever I sell a 255 put option , which will expire on December 18th.

I took a 2-month option instead of a 1-month option. That's okay. Sometimes I buy 1- month options. I never buy two or three month options. It depends on the situation. But, yes , I did get $11.55 , which brings my break-even cost to about $243.45, if my calculations are correct.

So, pretty good. Its average cost is actually pretty good in terms of being lower than this place, which you can see, and which is a very strong support zone for Amazon.