The gnarly pattern shown obtains, implying that AMZN is on its way to 575.55 over the next 4-6 days. The move through p=533.05 was so effortless that we should infer that buyers will make short work of the secondary pivot (p2) at 554.30. Accordingly, I’ll recommend a ‘mechanical’ long entry via the Oct 17 560 calls. Buy four of them if the stock pulls pack to 533.20. If this happens today (Tuesday), I estimate that the calls would be a pretty good deal for around 2.60/2.70. ______ UPDATE (2:27 p.m.): Amazon plunged from a bull-trap high of 549.71 on the opening to an intraday low of 533.33 that fell 13 cents from my target. Subscribers reported fills ranging from 2.50 to 2.70, so I’ll use 2.60 as a tracking price. For now, tie the calls to a 2.40 stop-loss against a good till canceled order to short Oct 17 570 calls for as much as you paid for the 560s. The stock has rallied as high as 538.22 since bottoming at 533.33, but it’s still not out of the woods. _______ UPDATE (10:37 p.m.): The options traded from 1.50 to 3.12 yesterday, so officially we’re out. Since some subscribers evidently still hold calls, I’ll note that AMZN could hit 572.40 within a day or two if it catches fire. A decisive move past p=550.70 would shorten the odds. Here are the relevant coordinates on the hourly chart: A=508.10 on 10/2; B=551.50 on 10/6 .
