AMZN Short Put — Aug 21, 2026
Trade Setup
Current Stock Price
$232.11
Entry Price
$267.50
Target Price
$133.75
Stop Loss
$535.00
Expiration
Aug 21, 2026
Suggested Contracts
1
Strike Details
Sell 210P
Risk / Reward
Max Loss
$20732.50
Max Profit
$267.50
Analysis
AMZN (Amazon.com, Inc. - Common Stock) presents a short put opportunity with elevated implied volatility. IV Rank 57. IV 3842.0% trades 1511.0pp above 30-day HV (2331.0%). This setup favors net premium sellers.
Sell the $210 put for $2.67 credit. Naked single-leg exposure; collect premium from time decay if AMZN stays above the strike. Underlying ~$232.83, 28 DTE. Max profit $268 per contract, max loss $20733, 1.3% return on risk, 83% POP. Breakeven at $207.32.
Management: take profit at ~50% of max profit ($134). Cut at 2x credit ($535 loss). If short strike is breached with > 14 DTE, consider rolling out for a credit. Close before expiration week to avoid gamma risk.
Setup Instructions
Underlying: AMZN @ ~$232.03 Expiration: Aug 21, 2026 (28 DTE) Net credit (entry): ~$267.50 per spread Legs:
- Sell AMZN Aug 21, 2026 $210 Put (delta -0.17, mid $2.67)
Use limit orders at the mid or slightly worse. Verify bid-ask spread (currently ~4.1% of mid) before sending.
Management Plan
Take profit at 50% of max profit ($134). Cut loss if position reaches 2x credit received ($535 loss). Roll if tested with > 14 DTE remaining.