Intermediate Trade: Amazon

Some of the tech names have gotten out of hand with exuberance. How can I tell? The upper end of the volatility curve is flattening. Essentially, calls are starting to get to the point where they are more expensive than at-the-money options.

While we are not there yet, we are close, and that tends to be times where stocks top out. A name that is seeing this type of action is Amazon (AMZN) . I think AMZN is setting up to pop through $950, but it could be near a point where it tops out after that -- likely below $1000 a share. So basically, I think the stock is going to move higher, but not a lot higher once it does move up. I know, it's circular, confusing logic....97 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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