Bearish for Amazon again!

Another bullish trade I'm still holding is for AMZN. You know I was bearish about AMZN for a few weeks till recently when it crashed down towards its 200 DMA. I think there is a good chance that AMZN will bounce back strongly in the next few weeks. The easiest option trade is to sell its naked puts but you need a lot of money to do so, since one contract means over $300K worth of the stock value for 100 shares. Even with a margin, it easily means $50K to $100K cash required depending on the broker's margin requirement. I have a much better way to play with it as I have shared with my Family (for each contract):

It means we can potentially make a profit of about 70% in the next few weeks as long as AMZN is not trading below 3280ish by its expiry (AMZN is trading around $3350ish).  I think the odds are quite good in our favor, given how oversold AMZN is right now!

This was what I posted early Aug when AMZN tanked quite a bit to $3350ish. Since then, AMZN has indeed mounted a powerful rebound for about 200 points. It feels like a very strong rebound, isn't it? But looking at its chart as below, I'm not sure anyone who can read it will really feel bullish for it! Just to share a few points of my takeaways:

• AMZN has completed a gap filling and has hit its overhead downtrend line (the red dot line)
• AMZN has bounced towards its low band of the previous uptrend, which is another obvious resistance for it (the lower green line)
• Its momentum indicators are not bullish at all with low volume in this rebound. 

If you ask me, I think AMZN is heading down again with the first target towards 3400ish and if not held, will be back to 3300ish again in the next few weeks. 

As such, I'm shorting AMZN again!