Three head-butts at the midpoint pivot shown lend authority to the 305.99 target associated with it. Since the bigger picture suggests AMZN could fall to as low as 266.12 before the traumatic correction begun last week has run its course, we’ll plan on shorting cautiously at the rally target. Accordingly, I’ll recommend buying four Nov 22 280 puts for 1.00 or less — contingent on the stock having traded no higher than 306.00. If the target is exceeded, or if the puts stay out of reach, we can adjust on-the-fly in the chat room. Of course, there’s an implied opportunity here as well to get long ahead of the corrective rally’s possible last gasp. The rally might also offer us a possible Jackpot Bet, especially if Friday’s opening bar is a downer. ______ UPDATE (November 3, 7:15 p.m. EST): The stock opened on a gap above 306.00, so we did nothing officially. So that we can have a horse in the race, and a reason to pay attention to this bear rally, I’ll recommend bidding 0.42 for two November 7 295 puts, good for the first hour of the session. You should NOT load up on puts, however, merely because there is an outstanding target well below these levels, at 266. _______ UPDATE (Nov 4, 8:00 p.m.) Officially we did nothing. Although the stock rallied overnight, it opened lower, pricing the puts out of reach.
