by Anura Guruge
on September 23, 2022
These are called ‘Leap Options’. They go out 2-years and come out around the 3rd week in September each year.
I was expecting them, & went looking for them today. I expected to see option prices at least as high as $200. NOPE. I tripled checked. Option pricing stops at $200. Yes, that is $86 higher than today’s closing price (viz., $113.78). Yes, that will be a 75% increase as of today — BUT that really isn’t that much, based on history, for AMZN. That is 846-days away — 2.3 years out.
What this says is that BASED on current market sentiments the option pricing folks do NOT expect AMZN to increase by more than 75%. That is SCARY.
As the second image shows this is very different to the pricing for January 2024. Those go up to $270. But, those prices were set in 2021.
What this says is that market sentiment has really soured. SCARY.
