Amazon.com Inc (NASDAQ:AMZN) stock is building on last week's buzz, up 5.2% to trade at $285.79, and earlier nabbing a record high of $287.20. The e-commerce giant hit $3 trillion in market cap value as the large cap AI trade returns with a vengeance, with Amazon finalizing its $50 billion OpenAI investment.
Last night, Roth Capital hiked its price target on Amazon to $325 from $300. AMZN melted up by 15.3% on Friday after a stellar earnings report, and is now 23% higher on the year. Keep an eye on the stock's 14-Day Relative Strength Index (RSI), now in "overbought" territory at 72.5.
Options traders are getting in on the fun. In just the first hour of trading, over 580,000 calls have changed hands, volume that's double the average intraday amount. The weekly 8/3 285-strike call is the most popular, while there's spread activity occurring at the weekly 10/2 285-strike.
Premium is affordably priced too, per a post-earnings volatility crush. AMZN's Schaeffer's Volatility Index (SVI) of 32% which stands higher than just 24% of all other readings from the past year, implying that near-term option traders are pricing in relatively low volatility expectations.
