Analyst Who’s Looking for Market Rally Suggests Bullish AMZN, GOOG Option Strategies

The market will eventually start rallying again, Joe Tigay, the Principal of Equity Armor Investments recently told The Schwab Network. Tigay suggested two bullish option trades involving Amazon (AMZN) and Alphabet (GOOG,GOOGL).

Tigay Is a Big Fan of AMZN

“I love Amazon for the short term and the long term,” Tigay enthusiastically said.

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AMZN is “a great name” to consider if the market rallies in April and heads higher for the rest of the year, he added.

Tigay noted that he is buying May 16 calls on the name with a $205 strike price. The option strategy has a breakeven level of $214.75.

“Hopefully I will be able to sell the calls into a nice rally in the next couple of weeks,” the investor said.

GOOG Is Well-Positioned, Tigay Believes

Alphabet looks poised to climb going forward, Tigay indicated. He noted that he was buying calls on the name and suggested but did not specify that he was buying calls with a $165 strike price, based on his belief that the shares will rally in April. The investor also did not state when his calls expire.

But he noted that he would look to sell the calls and “collect premium” if the shares reach the $175 level.

“I’m hoping that April is the month that the shares rally. If it takes longer, I’ll be stuck with a little premium, but I like its risk profile,” Tigay said.

While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as AMZN but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: The author owns shares of AMZN but has no intention of trading them in the next 48 hours. This article is originally published at Insider Monkey.