AMZN Put Credit Spread - Jun 19 Downside Cushion

AMZN gives a defined-risk bullish setup with the short strike roughly 8% below spot. The spread targets theta decay while preserving capped downside if the stock breaks lower. Estimated probability profile: about 72-76% POP if live short put delta is near 20-25.

Current quote snapshot used for this alert: AMZN ~$261.12. This is an educational trade idea, not personalized financial advice.

Underlying: AMZN @ ~$261.12 Expiration: Jun 19, 2026 Structure: Sell 240P / Buy 230P Target entry: collect about $2.00 credit per share, or better.

Probability focus: sell out-of-the-money downside premium in a highly liquid single name while avoiding unlimited assignment-style risk. Avoid if earnings falls inside the holding period.

Use limit orders only. Verify live option chain liquidity, bid/ask width, earnings date, and short-strike delta before entering. Skip the setup if the live credit is materially worse than the target or if the short strike is no longer around the intended probability zone.

Take profits at 50% of max profit, near $100 per 1-lot. Defend or exit if the position reaches about 2x credit received, near a $400 loss per 1-lot, or if price closes beyond the short strike with momentum. Avoid holding into expiration week unless actively managing assignment/gamma risk. Re-check earnings and macro-event calendar before entry.