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The Best Options Trade for Amazon (AMZN) Earnings

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On Tuesday, October, 27th, Amazon (AMZN - Free Report) will release its third quarter earnings results after the bell. The company is a Zacks Rank 1 (Strong Buy), and have a Value, Growth, and Momentum score of B.

Dave will look at Amazon’s past earnings, take a look at what is currently going on with the company, and give us his thoughts on their upcoming earnings announcement.

Furthermore, Dave will uncover some potential options trades for investors looking to make a play on Amazon ahead of earnings.

Amazon in Focus

Amazon.com, Inc. seeks to be the world's most customer-centric company, where customers can find and discover anything they may want to buy online. The company lists unique items in categories such as books, music, DVDs, videos, consumer electronics, toys, camera and photo items, software, computer and video games, tools and hardware, lawn and patio items, kitchen products, and wireless products.

Amazon is expected to report earnings at $0.85 per share according to the Zacks Consensus Estimate. Last quarter they beat earnings expectations by 56.14% at $1.78 per share, beating estimates of $0.64 per share.

AMAZON.COM INC Price and EPS Surprise

AMAZON.COM INC Price and EPS Surprise | AMAZON.COM INC Quote

Amazon is trading around $829.00 a share, and their 52-week high is $847.21 per share. Their average EPS surprise is 90.92%.

Bottom Line

How should investors play Amazon ahead of their earnings report? For insights on the best options trades, make sure you are subscribe to Live Trader to see Dave Bartosiak at 1:00pm on Wednesday.

We classify Amazon as a part the internet-commerce industry, and their industry is ranked top 17% according to the Zacks Industry Rank. That said, Amazon has diversified considerably in recent years by opening up Amazon Studios which goes against Netflix (NFLX - Free Report) . Then as an online retailer giant, then Amazon’s competition has increased with brick and mortar companies such as Wal-Mart (WMT - Free Report) and Best Buy (BBY - Free Report) increasing their online presence. As an investor it’ll be interesting to see where Amazon goes in foreseeable future.

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