How To Profit From Amazon Stock Facing Big Price Swings With Earnings On Deck

The article discusses Amazon stock holding above its 21-day moving average despite a 2% decline, with market attention centered on its upcoming July 30 earnings report. It highlights elevated implied volatility in short-term options versus longer-dated options, creating a volatility skew that option traders can potentially exploit. The piece suggests a diagonal put spread as a defined-risk strategy, outlining example strikes, premiums, breakeven levels, and risk controls. Overall, the tone is cautious but constructive, framing the setup as an income-oriented trade rather than a directional bet. The market impact is focused on AMZN earnings-related volatility and potential short-term trading activity ahead of the report.