In the trader tip video, Brian talks about Amazon which is currently trading post 20 for 1 stock split. After the split, both the shares and the options are much more accessible than they had been before.
Amazon’s stock has rallied a bit but we don’t want to chase it. Although we would like to buy some shares long-term, we would probably wait for a pullback to do that. One way to address this concern, about chasing the shares, would be to do a call diagonal spread where we are both selling an option and buying an option.
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Disclaimer: None of this material is meant to be construed as investment advice. It is for education and entertainment purposes only. The video is accurate as of the posting date but may not be accurate in the future.
