AMZN Bear Put Spread — 2026-08-21

AMZN (Amazon.com, Inc. - Common Stock) shows bearish unusual options activity: $4334K of buyer-initiated unusual put flow (100% put-dominant) detected across near-term expirations, with a peak vol/OI ratio of 0.3x on the 220 put. IV rank is 56 (elevated) — a bear put spread (232.5/230) trims theta/vega bleed versus a naked long. Buy the $232.5 / sell the $230 put bear put spread expiring 2026-08-21 (25 DTE) for a net debit of $1.25 ($125 per spread). Breakeven at $231.25; net delta 0.04. NOTE: earnings (2026-07-30) fall inside the trade window — premium will likely crush on the print; sized/structured defensively and not a hold-through-earnings idea.

Underlying: AMZN @ ~$231.78 | 2026-08-21 (25 DTE) | Net debit (entry): ~$125 per spread. Use limit orders at the mid or slightly worse.

MAX LOSS: Limited to the net debit ($125 per spread). Max gain is capped at the strike width minus the debit — a defined-risk, defined-reward trade. | IV RISK: IV rank is 56 — reasonable for a debit spread. | TIMING: 25 DTE — unusual flow is a near-term signal; act promptly or the setup may stale. Close or take profit before expiration week to avoid gamma risk. | SECTOR: AMZN is in Consumer — avoid concentration with other open Consumer positions. | EXECUTION: Use limit orders at mid or slightly worse on the spread (don't leg in). Verify the bid-ask before sending; do not chase with market orders. | EARNINGS: Report on 2026-07-30 lands inside this trade. Expect a vol crush on the print — this is structured as a spread for that reason; do not add size into the event.