Shorted AMZN Today

Shorted AMZN Today

Shorted AMZN today shares at $647.70 and bought the $645 puts that expire today at an average of $1.61.

This is a pretty big bet. This is for the more risk averse. The plays are working well as this is being typed.

We are thinking the chance of a Black Swan Event is becoming more likely. More to come on how to play a Black Swan event.

You can also get this book that will help you prepare.   http://amzn.to/1lBiB4N

The simplest way to profit from a fall in Amazon’s stock price is to short the stock with a broker. Borrow the stock and then sell it at the market or with a limit order. At some future point, the stock must be bought back to close the trade. When the stock is bought back if the price has increased or risen, then the investor loses money on his short sell. If the stock price has fallen, then the short-seller profits from the difference between the selling price and the price at which it is bought back.