How to Profit from Amazon Stock Before Cyber Monday (Without Spending $1,100 per Share)

Amazon.com Inc. (Nasdaq: AMZN) stock should be the first that comes to mind for investors as Cyber Monday approaches. If ever there was a company set to dominate its industry, it's Amazon. And Amazon stock has already rewarded shareholders generously with a 50% year-to-date gain.

Amazon cryptocurrencyIn fact, it's one of only a handful of stocks trading above the $1,000 per share level.

Of course, a high share price like that can be daunting. Thursday, it closed at $1,137.29 per share.

That should not be a problem for long-term investors, because owning a piece of such a top company, even if it is a small piece, is a good idea. However, if you don't want to lay out $1,137 per share, Money Morning's options trading specialist, Tom Gentile, has a great way to profit from Amazon's success at a much lower price point.

Not only that, but his strategy actually reduces risk...

Amazon Stock Remains a Must-Own for Long-Term Investors

If you're a long-term investor, the best option is still buying the stock and holding it. In fact, Money Morning Chief Investment Strategist Keith Fitz-Gerald recently told readers that Amazon stock could hit $2,000 in the next 18 months...

Amazon dominates the retail sector and commands the lion's share of American online shopping dollars. According to the researcher Cision, Amazon is expected to account for 43% of all e-commerce sales. Industry wide, e-commerce sales are up 53% in 2017.

Look for the X: This mysterious "X" pattern predicts which stocks are going up - with 100% certainty. Some have gained as much as 225% in 15 days and 264% in less than a month. Learn more...

Even though other "traditional" retailers, like Wal-Mart Stores Inc. (NYSE: WMT), are beefing up their efforts to sell online, Amazon is still the online retail juggernaut largely responsible for their declining sales and traffic.

Look at Amazon's competitive position. Unlike a manufacturer, Amazon can add a million customers at a click of a button or by merely releasing a few lines of code. It can expand its reach in a way that other retailers simply cannot.

And it does not stop with retail. Amazon now offers streaming video and music, cloud storage, and payment services.

It goes even deeper. The recent acquisition of organic grocer Whole Foods Market Inc. will leverage Amazon's digital assets. Just think about how Amazon Echo, Alexa, and Dash products could make ordering easier than even sitting down with a smartphone.

But if you would like a short-term plan to profit sooner, Gentile recommends a strategy using options. And it won't require you to put down $1,137 per share...

The Lower-Risk Way to Profit from Amazon Stock Now

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Don't let an options strategy intimidate you. This one is really quite simple and easy to do.

And with Cyber Monday gaining traction as the shopping event of the year, there is no better time to do it.

Gentile recommends the same strategy for Amazon as he did for Chinese retail powerhouse Alibaba Group Holding Ltd. (NYSE: BABA) a few days ago.

Called a "call debit spread" or a "bull call spread," it's a strategy where you trade two call options with different strike prices but the same expiration date. Because you buy the lower strike and sell the higher strike, there will be an initial cost. However, it will be lower than just buying a call outright, because the higher strike call will help pay for the lower strike call's upfront cost.

This lowers your risk, because you have less money in the trade. However, the tradeoff is that the upside potential is capped.

Gentile recommends working with a January 2018 expiration date, because between now and then, you can benefit from the traditional end-of-year "Santa Claus rally" and the surge that often happens in the new year, known as the "January Effect."

Next, you choose your strike prices. The goal is to have the higher strike just a little below where you think Amazon stock will be at the end of the third week of January - the options expiration date. Considering that the stock recently broke out to the upside from a five-month trading range, you could buy the 1140 call and sell the 1150 call (as you'll see in the options calls).

Remember, you are not actually buying and selling shares of stock. With this example, at expiration, if Amazon stock climbs to $1,150, you make $10 gain per options contract (or $1,000 per lot), offset by the initial cost. In this case, that would be about $435, for a net gain to you of about $565 (130%).

A Brand-New Way to Profit Every Week

When it comes to making money, Tom Gentile likes to keep things as fast as possible.

So he's invented a brand-new way you could pocket $1,000, $1,500, even $2,000, in just four days or less.

And he's ready to reveal how you can play these fast-cash paydays Monday to Friday, every single week. Click here now...

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