Wall Streeter�s only truly mourn their losses. Everything else is an opportunity to make money.
So as the world outside Wall Street mourns Michael Jackson�s death, one trading strategist is telling clients how to profit from his demise.
Scott Fullman, WJB Capital�s derivatives strategist, told clients to use options on Amazon (AMZN) to position for profits as fans buy memorabilia to remember the singer.
Fullman likes buying Amazon�s July 85 calls, which would increase in value if the $82 stock price advances. Conversely, he also likes selling Amazon�s July 75 puts for $1.00.
��Many fans quickly went online to order Jackson albums and memorabilia,� Fullman told clients in a note distributed before the stock market opened Friday. �According to reports, sales were exceptionally strong on Amazon. Demand is expected to continue today, with strength anticipated into this weekend.�
It’s conceivable eBay (EBAY) could be a similar beneficiary, I’d imagine.
– Steven Sears, Barrons.com columnist and options factotum
No comments:
Post a Comment