If a new leg of the bull market is just getting started, positioning in the leaders should pay off well. With this in mind, we’re going to get involved in a name everyone knows and uses — Amazon. The odds are good that Amazon will deliver profits to those well-positioned for a run.
Implied volatility in the options affords us the luxury to go further out in time for our thesis to play out, but we’re going to cap our upside both because we think there will be some upside resistance that comes into play and also to increase our odds of success.
[Read more…]