AMZN Options Trading — Covered Calls, Puts & the Wheel
A complete guide to selling options on Amazon.com Inc.. Expected premiums, strike selection, real example trades, and the four strategies that actually work for AMZN.
Why trade options on AMZN?
AMZN (Amazon.com Inc.) is a mega-cap consumer discretionary name with a mid-range share price and excellent options liquidity. Implied volatility is moderate — enough premium to make selling options worthwhile, without the heart-stopping price swings you get on speculative names. It pays no dividend, so every dollar of income must come from the options you sell.
Typical monthly premium collected on AMZN runs around 1.0-2.0% of capital, which annualizes to roughly 12-24% if you sell new contracts every cycle. Capital required to run a single contract wheel on AMZN is $5,000-$20,000 — the share price and the 100-share lot size set the minimum, not the strategy.
Live Data Snapshot
See the full AMZN case study at /stocks/amzn-covered-calls-cash-secured-puts for a sample trade and full strategy breakdown.
Four strategies that work on AMZN
AMZN Covered Call
Sell upside calls against 100 shares you already own to collect premium every month while capping your upside.
Read the AMZN Covered Call guide →AMZN Cash-Secured Put
Sell a put backed by cash so you either get paid to wait or acquire the stock at a discount to today's price.
Read the AMZN Cash-Secured Put guide →AMZN Wheel
Alternate between cash-secured puts and covered calls on the same ticker to generate continuous premium income.
Read the AMZN Wheel guide →AMZN Poor Man's Covered Call
Replace the 100 shares with a long-dated deep-ITM LEAPS call and sell short-dated calls against it to reduce capital.
Read the AMZN Poor Man's Covered Call guide →AMZN options FAQ
What is the best strike price for a AMZN covered call?
On AMZN, target 5-8% out of the money at 0.20-0.30 delta. On a moderate-volatility stock like this, closer-to-the-money strikes chase premium but spike assignment probability to uncomfortable levels.
How much premium can I collect selling calls on AMZN?
Typical monthly premium on AMZN is 1.0-2.0% of position value, annualizing to 12-24% when you roll every cycle. Earnings months can pay 2-3x the normal rate because of elevated IV.
What is the best delta for a AMZN cash-secured put?
A delta of 0.20-0.30 on AMZN balances premium income with assignment probability. Many traders anchor to 0.20 delta as a starting point and adjust based on their willingness to own shares.
How much cash do I need to sell a put on AMZN?
Cash required is 100 × strike price. For AMZN, that's roughly $5,000-$20,000 per contract at a typical strike. Most brokers let you use margin, but for a true cash-secured put you set aside the full amount.
Is AMZN a good stock for the wheel strategy?
AMZN is excellent for the wheel because of its penny-wide spreads and moderate IV (good premium/risk balance). No dividend means all your return comes from premiums and price appreciation.
Can you run a poor man's covered call on AMZN?
Yes. Buy a 0.80+ delta LEAPS on AMZN dated 12-18 months out as your synthetic long, then sell short-dated calls 5-8% above the stock at 0.20-0.30 delta. Capital tied up drops from $5,000-$20,000 to roughly 30-50% of that — a meaningful improvement when the share price is a mid-range share price.
What expiration should I use for AMZN options strategy trades?
Use 30-45 DTE as a default for AMZN. This is the classic theta sweet spot and works well on a stable ticker like this.
Is AMZN suitable for beginners selling options?
Yes — it's a well-known, liquid name with established options markets, which is what beginners need.
Run the numbers on AMZN yourself
Use the free OptionsPilot calculator to price covered calls and cash-secured puts on AMZN with live quotes.
Open the AMZN Strike Finder →