Amazon.com, Inc’s (NASDAQ:AMZN) 20-for-1 stock split, announced earlier in March, came into effect on Monday.
On CNBC's "Options Action," Michael Khouw of Optimize Advisors said that Amazon’s options will also be split in the same ratio as the stock split. “So, if you owned one call contract, now you own 20 call contracts,” he added.
Check out tech stocks making moves in the premarket.
There were buyers of 206,000 of the June 10 weekly 130 calls at $1.68 per contract on average, Khouw mentioned. Trades see shares of Amazon rising at least 5% by Friday’s close, he added.
Also Read: Amazon Stock Could Find Popularity With Retail Investors Once Again After Stock Split
AMZN Price Action: Shares of Amazon were down 0.99% at $123.55 on Tuesday, according to Benzinga Pro.
