Option prices for AMZN stock are implying a larger than average move ahead of the stock?s earnings?on 4/25.
The price of a AMZN straddle, which is a position consisting of an at-the-money call and put using near-term options, implies a 4.4% price movement. However, over the last four quarters the stock has historically averaged a return of -2.25% immediately following earnings.
This expected move is nearly double what is typical for AMZN.