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Fast Money 360: Amazon

With shares of Amazon bouncing between $160 and $190 over the past 3 months, how should you trade this stock into – and in the wake of – earnings.

Seems like a good time for Fast Money 360.

Find out what fundamentals, technicals and insights from the options world all suggest lie ahead for this stock.

FUNDAMENTALS

ThinkEquity analyst Aaron Kessler has a somewhat mixed view.

On a positive note, he expects forthcoming earnings will show that the “top-line is strong. We are looking for about 34% revenue growth year over year."

But there are some negatives too.

“On the bottom line we’re looking for flat to down year over year earnings as Amazon continues to invest aggressively,” he says.

CHARTS

Oppenheimer chief market technician Carter Worth finds the patterns in Amazon intriguing.

Looking at the chart he says, “There’s a lot of tension in this chart. The stock has been at the $185 plus minus level for about four or five months.”

So which way will it break?

Worth’s bias is higher. “We think it gives way to a big upside move. We’re a buyer of Amazon going into earnings.


OPTIONS

Brian Stutland of Stutland Equities is also bullish but suggests using options to limit risk.

“I would be a buyer of Amazon, but I want to sell some calls against my stock position to limit some of my risk to the downside and lower my cost effective buy point of the stock,” he explains.






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Trader disclosure: On April 25, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Seymour owns (AAPL); Seymour owns (BX); Seymour owns (F); Seymour owns (GE); Seymour owns (POT); Grasso owns (AMD); Grasso owns (ASTM); Grasso owns (BA); Grasso owns (BAC); Grasso owns (C); Grasso owns (CSCO); Grasso owns (D); Grasso owns (JPM); Grasso owns (LIT); Grasso owns (LPX); Grasso owns (MHY); Grasso owns (NDAQ); Grasso owns (PFE); Grasso owns (PRST); Grasso owns (TEVA); Finerman and Finerman's firm own (AAPL); Finerman and Finerman's firm own (BP); Finerman owns (C); Finerman and Finerman's firm own (CVS); Finerman's firm owns (IBM); Finerman's firm owns (JPM) and (JPM) leaps; Finerman owns (JPM); Finerman and Finerman's firm own (MSFT); Finerman's firm owns (TGT); Finerman owns (UNG); Finerman owns (USO); Finerman's firm is short (IWM), (MDY), (SPY); Finerman's firm is long S&P 500 puts; Finerman's firm is long Russell 2000 puts; Terranova owns (VRTS); Terranova owns (JPM); Terranova owns (V); Terranova owns (BX); Terranova owns (UPL); Terranova owns (HOC); Terranova owns (TCK); Terranova owns (BAX); Terranova owns (FCX); Terranova owns (OXY); Terranova owns (APA); Terranova owns (SLV); Terranova owns (XOM); Terranova owns (AKAM)

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