Sept. 29, 2016
Historical average return:
(backtested over 16.7 years)
Historical success probability: 54.4%
As Amazon stock has surged 16% in the past three months, many investors are hesitant to add exposure at these valuation levels. However, specific call options now present attractive risk/reward ratios compared to owning shares outright due to historically low implied volatilities today. The calls retain upside exposure and have positive options backtesting results.