Amazon.com (AMZN) to debut iTunes rival soon

Published: August 31, 2007, 8:25 am

Tags: aapl, amazon com, amzn, apple, inthenews, investors observer, investorsobserver, itunes, options

Filed under: Good news, Launches, Competitive strategy, Apple Inc (AAPL), Amazon.com (AMZN), Options, Technical AnalysisAmazon.com Inc. (NASDAQ: AMZN) shares are jumping today after a report that the company plans to launch an online music service in September as an alternative to Apple's (NASDAQ: AAPL) popular iTunes mp3 store. If you think this means good times for the company, then now could be a good time to look at a bullish hedged trade on AMZN.After hitting a one-year high of $89.00 in July, shares have trickled downward over the last month. AMZN opened this morning at $80.00. So far today the stock has hit a low of $79.70 and a high of $80.49. As of 11:00, AMZN is trading at $80.40, up $1.72 (2.2%). The chart for AMZN looks bullish but deteriorating, while S&P gives the stock a negative 2 STARS (out of 5) sell rating.For a bullish hedged play on this stock, I would consider an October bull-put credit spread below the $67.50 range. A bull-put credit spread is an options

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