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Options Strategy 30 December 2015

Amazon Jan $500 Call Options: 990% In 4 Months. Take Profit

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Buy/Sell Range
Take Profit
Bias
Take Profit
Target Price
Take Profit
Time Horizon
Take Profit
Attainable Profit
Take Profit

* On 27 August 2015, we advised to Buy Amazon Jan $500 call options between $55 and $57. Target: $80: http://www.bluephoenixfinancials.com/options-strategies/amazon-jan-500-calls-buy-uptrend-started/

* NOTE: Our orders were executed at $55.00, $55.03, $53.50, $53.70

* Investors who followed our advice are now making a total profit of 990 percent based on the last traded price of $190.20

* We advise Investors to take profit immediately

* We will re-accumulate longer dated Amazon call options at lower strategic levels

* Amazon.com Inc. is the world’s largest online retailer, with about $100 billion in sales in the 12 months ended Sept. 30. The development of its fulfillment network has opened an additional path for growth and profitability, as more vendors join the Amazon marketplace

* Prime service adoption continues to be a key growth driver due to the frequent shopping habits of subscribers. Rapid expansion of cloud services gives the comany access to a new, high-margin market that IDC projects may top $25 billion by 2018

* Adding more Prime subscribers, who spend significantly more, is driving Amazon.com’s constant-currency sales growth, which had been decelerating, and breaking the apparent link with new-customer gains

* Amazon’s margins, which had been suppressed by investments in fulfillment centers, cloud infrastructure and hardware products, may widen with increasing adoption of its Amazon Web Services cloud services, fulfillment by Amazon (FBA) program and rising sales. AWS’ operating margin, at about 25%, tops Amazon’s other businesses, while rising FBA sales support core retailing profit. The proportion of third-party units, many of which use FBA, has risen 600 bps since 3Q13 to 46%, helped by more Prime adoption

* Amazon Web Services (AWS) is driving profitability at Amazon, accounting for more than 50% of segment operating income on only 8% of revenue in 3Q