AMZN Bull Put Credit Spread — 2026-08-21

AMZN (Amazon.com, Inc. - Common Stock) shows bullish unusual options activity: $28447K of buyer-initiated unusual call flow (78% call-dominant) detected across near-term expirations, with a peak vol/OI ratio of 1.8x on the 280 call. We fade this by SELLING premium on the other side: the trade profits from time decay as long as AMZN stays above $275 through expiration. IV rank is 27 (low) — rather than sell naked premium at this IV, this is defined as a bull put credit spread (short $275 / long $272.5) so max loss is capped. Sell the $275 / buy the $272.5 put bull put credit spread expiring 2026-08-21 (18 DTE) for a net credit of $0.83 ($83 per spread). Breakeven at $274.18; net delta 0.04.

Underlying: AMZN @ ~$284.00 | 2026-08-21 (18 DTE) | Net credit (entry): ~$83 per spread. Use limit orders at the mid or slightly better.

ENTRY: Sell the $275 / buy the $272.5 put credit spread expiring 2026-08-21 (18 DTE) as ONE order at a LIMIT of the mid or better — target credit $83 on a $2.5 -wide spread. IV rank 27 is low — premium is thin, so keep size small and lean on a defined-risk structure. Don't leg in. Gamma: dealer gamma is POSITIVE (vol-suppressing) — spot tends to pin/mean-revert, so a briefly-tested strike often reverts; don't over-adjust on the first touch; put wall (support) at $270; call wall (resistance) at $280. | TAKE PROFIT: Buy the spread back to LOCK IN gains at ~50% of the $83 max credit (close near $41 remaining). Also close on TIME: exit around 21 DTE regardless of P&L to sidestep the late-cycle gamma/pin risk near AMZN's short strike(s) — currently 18 DTE, so plan the exit 0 day(s) out. Defined risk — max loss $168, so let it run to ~50% rather than scalping tiny. | IF TESTED: If AMZN tests the $275 short put (delta ~0.30) or the loss reaches ~$165 (≈2× credit), roll the WHOLE spread DOWN and OUT ~7–14 days for a net credit — the lone-vertical play is roll-down-and-out or close (there's no untested side to roll in until you add a call spread). Treat a close below the $270 put wall as the hard trigger to act (the pin support has failed). If price knifes past the $272.5 long put, the spread is at/near max loss ($168) — take it rather than hoping. Breakeven $274.18. | MAXIMIZE: Winning cleanly above $275? Let theta close it toward 50%. To improve it, roll the spread UP toward the money in the next cycle for a fatter credit once most of this credit is banked, or add a bear call spread above the market to convert into an iron condor and double the premium if the flow turns two-sided.