I should wait until the end of the day to enter this trade, but the market momentum for today is very strong. So it seems very unlikely the technical setup will not be in pace at the Close. The market gapped up today on the CPI inflation report that indicates inflation is easing. I think this sentiment is premature, but I think it'll last long enough to hit our Target.
AMZN is showing the following on the Daily chart above:
- Kicker candlestick pattern
- Bounce off the 127.2% Fibonacci level
- Low stochastics
- Likely Close above the 8ema
The Target is the top of the 109.77 - 104.87 gap. Bought AMZN Nov 100/105 Call Vertical option spread for 1.18 at 12pm ET today. The close proximity of the 11/18/22 expiration date will help with the "fuller" valuation of the spread than a later dated expiration. The spread will help mitigate the high Theta time decay.
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