Long-Term Bull Put Spread Provides Opportunities for Amazon Bulls

Long-Term Bull Put Spread Provides Opportunities for Amazon Bulls Gavin McMaster Mon, September 14, 2026 at 1:00 PM GMT+2 3 min read AMZN Amazon delivery truck by Andrew Stickelman via Unsplash Amazon (AMZN) looks ready to bounce back from the recent bout of selling and looks like a good bullish candidate for the remainder of the year. More News from Barchart Is ConocoPhillips Stock Worth Buying Here? - Shorting COP Puts and Credit Spreads are Better Plays Amazon's Operating Cash Flow Could Push AMZN Over $314 - What's the Best AMZN Play?

American Airlines (AAL) Stock's Probability Curve Is Screaming for a Staggered Options Spread Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Amazon's share price is now sitting 10.

59% below its 52‑week high, with the stock up 11. 25% year-to-date. Investors may see an attractive entry point if they believe tech stocks will continue to remain strong into early 2027.

AMZN BULL PUT SPREAD Today, we're going to look at a bull put spread trade, but instead of using a regular monthly expiration, we will look at a longer-term trade. Longer-term option trades tend to move a little slower than shorter-term trades. That allows more time to adjust or close, but also means a lower annualized return.

As a reminder, a bull put spread is a bullish trade that also can benefit from a drop in implied volatility. The maximum profit for a bull put spread is limited to the premium received while the maximum potential loss is also capped. To calculate the maximum loss, take the difference in the strike prices of the long and short options, and subtract the premium received.

Implied volatility is currently sitting at 30. 07% which gives AMZN an IV Percentile of 28% and an IV Rank of 23. 15%.

To create a bull put spread, we sell an out-of-the-money put and then by a put further out-of-the-money. If we go out to March 2027, we could sell the March 29 put with a strike price of $210 and buy the $200 put, which would create a bull put spread. This spread was trading on Friday for around $1.

70. That means a trader selling this spread would receive $170 in option premium and would have a maximum risk of $830. That represents a 20.

48% return on risk between now and March 19 if AMZN stock remains above $210. If AMZN stock closes below $200 on the expiration date the trade loses the full $830. The breakeven point for the bull put spread is $208.

30 which is calculated as $210 less the $1. 70 option premium per contract. That breakeven price is around 18.

88% below Friday's closing price. Other potential bull put spread setups are shown below: Conclusion And Risk Management Story Continues One way to set a stop loss for a bull put spread is based on the premium received. In this case, we received $170, so we could set a stop loss equal to the premium received, or a loss of around $170.

Another way to manage the trade is to set a point on the chart where the trade will be adjusted or closed. That could be if the stock breaks through the key level of $230, which is the below the current level of support and below the 200-day moving average. Please remember that options are risky, and investors can lose 100% of their investment.

This article is for education purposes only and not a trade recommendation. Remember to always do your own due diligence and consult your financial advisor before making any investment decisions. On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article.

All information and data in this article is solely for informational purposes. This article was originally published on Barchart.