AMZN Bear Put Spread — 2026-08-21

AMZN (Amazon.com, Inc. - Common Stock) shows bearish unusual options activity: $6920K of buyer-initiated unusual put flow (73% put-dominant) detected across near-term expirations, with a peak vol/OI ratio of 0.5x on the 225 put. IV rank is 63 (elevated) — too rich to buy a naked option into, so this is structured as a bear put spread (237.5/235) to cut vega and cost. Buy the $237.5 / sell the $235 put bear put spread expiring 2026-08-21 (22 DTE) for a net debit of $1.20 ($120 per spread). Breakeven at $236.30; 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 @ ~$236.98 | 2026-08-21 (22 DTE) | Net debit (entry): ~$120 per spread. Use limit orders at the mid or slightly worse.

MAX LOSS: Limited to the net debit ($120 per spread). Max gain is capped at the strike width minus the debit — a defined-risk, defined-reward trade. | IV RISK: IV rank is 63 — elevated IV inflates premiums; a vol crush could erode value even if direction is correct (the short leg offsets some of this vega). | TIMING: 22 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.