While you’re busy this weekend searching through the dearth of deals ahead of Amazon’s annual Prime Day sale…
There’s a reason for you to consider one trade in particular at the close of trading on Prime Day itself.
Flashback to 2015. Amazon turned 20.
Having left its troublesome teenage years… Bezos and friends wanted a way to “celebrate” customers who pay for a Prime membership.
Thus, Amazon Prime Day came to be. A global shopping event with the self-described goal of offering deals greater than Black Friday for Prime members.
A funny thing resulted. Amazon found its customers bought more items on Prime Day 2015 than on Black Friday 2014……which Amazon said it was its biggest Black Friday ever at the time.
How many sales? 34.4 million items sold. That breaks down to 398 items per second.
Why should you care? This boosted sentiment on $AMZN earnings’ call later in the month.
And it wasn’t just once. EVERY YEAR since Amazon introduced Prime Day… that’s 2015, 2016, 2017, 2018… its stock price showed a remarkable pattern.
Take a look:
- 2015 Prime Day close: 461.19; July 24, 2015 post-earnings open price 578.99
- 2016 Prime Day close: 748.21; July 29, 2016 post-earnings open price 765.00
- 2017 Prime Day close: 996.47; July 28, 2017 post-earnings open price 1012.14
- 2018 Prime Day close: 1822.49; July 27, 2018 post-earnings open price 1876.05
Sure it’s only four occurrences, and there’s a bias of small sample size… but you can construct a series of options trades SPECIFICALLY FOR EARNINGS from this data.
I’ll let your trading brains run wild with the possibilities. (Note from Tim: and don’t forget the cool items on Slope specifically designed to help options traders smoke out these opportunities!)
