AMZN - one trade for the month
I don’t know why, but I have a thing with money not being used/utilised, so decided to dump the last bit of the spare capital into AMZN. The market has pulled back quite strongly yesterday night, but for some reason majority of my portfolio was not affected (which is great) I guess good stocks don’t drop that much.
I love tech stocks, definitely the way of the future! especially after the ‘tech burst’ only the good ‘tech’ companies are left. Also the companies that you would trust to do anything with. e.g. amazon.com, ebay.com, google.com etc. and also not to forget companies such as nvidia, microsoft, research in motion, apple etc. Great companies, great management, great balance sheet and great income statement. I think I need to start my own little business and try to mimic characteristic of these great company’s financial statements…
This is pretty much my 2 days of work for the month, now all I do is wait till the 18th Jan 2008 before I ‘work’ again… and collect more money.
I’ve been studying and I remember hearing something like this, “… if you can figure out how your goals can be achieve, then its too easy…” i.e. I need something more challenging ’cause it definitely feels like this is too easy and i’m just waiting for time to pass so I can collect… stick around and see what cool stuff I decide to venture into…
Anyways, Happy New Year!
The Trade - 27/12/2007
AMZN
Options/Contract = 100
Buy 200 AMZN @ $94.29 ($18,858.00)
Sell 2 AMZN $95.00 Call @ $3.50 ($700.00)
Time Value: $3.50
Intrinsic Value: $0.00
Breakeven Point: $90.79
Assigned Return: 4.43% ($4.21/$95.00)
Unassigned Return: 3.68% ($3.50/$95.00)
