In light of Wal-Mart Stores Inc.‘s (NYSE:WMT) bombshell announcement that it’s expecting a 6% to 12% earnings cut over the next two years, expectations are high for Amazon.com Inc. (NASDAQ:AMZN), which reports earnings after the bell today.
The volatility I’m seeing with AMZN shares tells me traders are afraid Amazon might not deliver on earnings.
It’s always difficult to predict which direction a stock will break around earnings. The slightest bit of news could send a stock soaring… or crashing.
Last week, I showed you how to construct a Straddle, a non-directional trade that’s perfect for when you can’t tell which way a stock is going to move.
Ahead of earnings – and all the uncertainty and volatility that comes with it – is AMZN a ripe for a straddle?
Let’s take a look…
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