AMZN Still Holding Strong

Although BIDU, NFLX and PCLN puts have been HUGE winners, my AMZN puts have been weak. Other than a few swing trades, the big drop in AMZN has not happened…yet.  It will drop, I have no doubt whatsoever, the question is timing.  I usually have small put positions on a stock until I see it cracking and breaking through support levels and then I apply more pressure. AMZN has yet to crack,  so I will keep my eye on it and lose some money in the process. I don’t want to miss a big drop in case it happens. AMZN may be holding on stronger for 2 reasons. 1) Best Buy missed it’s numbers and investors are assuming AMZN is winning some of those customers. 2) With holiday shopping, Amazon should show good online results. The problem I have with Amazon is the valuation at $178. This is a $30-$70 stock in my view. They have small margins and the PE is way too high. Fortunately my losses on AMZN have been small based on the cheap option prices. Still 3 out of 4 winners is not bad is it? and I still have 2 days with AMZN to pull it off.