Amazon Is Up 2% Today. Tony Battista Is Fading It With a $400 Iron Condor Before Earnings.

Why It Matters

The trade showcases a low‑risk, defined‑reward approach to profit from Amazon’s wide price range before earnings, offering a template for options traders seeking controlled exposure to volatile mega‑caps.

Key Takeaways

• Amazon trading ~2% higher, hovering near $260 resistance.
• Trader sets $400 credit iron condor spanning $215-$270 strikes.
• Defined‑risk trade uses $1,600 buying power, 66% probability profit.
• Break‑even points around $274 upside and $211 downside.
• Position aims to close before May 7 earnings, targeting $1‑plus profit.

Summary

The video focuses on Amazon’s recent 2% rally, with the stock trading around $260, and outlines a options trade that analyst Tony Battista proposes ahead of the company’s May 7 earnings.

Battista constructs a wide iron condor, selling a 215‑put and a 270‑call while buying the 215‑put and 270‑call 20 points apart, collecting roughly $400 in credit. The trade consumes about $1,600 of buying power, offers a roughly 66% probability of profit, and positions the break‑even points near $274 on the upside and $211 on the downside.

He notes that volatility skews slightly higher when the underlying moves up, which explains why the credit was a bit larger despite a higher entry price. The defined‑risk structure caps loss at the width of the spread minus the credit, and he plans to manage the position early, aiming for a modest $1‑plus gain before earnings.

If the trade performs as expected, it demonstrates how traders can monetize a broad price range while limiting downside, especially in a high‑profile stock like Amazon where earnings volatility can be significant. The strategy also illustrates disciplined capital allocation and risk control for retail options investors.

Original Description

Defined risk options trading and iron condor strategy are the focus as tastylive's Options Trading Today walks through a live Amazon trade using a $20-wide iron condor in the May cycle. With Amazon sitting in a recent range between $205 and $260, the 215/195 put spread and 270/290 call spread gives you a 66% probability of profit using just $1,600 in buying power and collecting $4.16 in credit. Earnings are May 7th, which means the plan is to take roughly $1 in profit within three weeks and be out clean before the binary event hits.

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CHAPTERS:

00:00 Amazon Up 2% and Inside a Big Recent Range

00:45 Trade Setup: May Iron Condor Using Range Highs and Lows

01:09 Why $20 Wide on a $200 Stock: The Mechanics Rule

01:27 270/290 Call Spread and 215/195 Put Spread Setup

01:46 Filled at $4.16: Why Vol Expansion Affected the Fill

02:13 66% POP, $400 Credit, $1,600 in Buying Power

02:29 Break Evens: $274 to the Upside, $211 to the Downside

02:53 Management Plan: Target $1 Profit in Three Weeks Before Earnings

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