Amazon employees in Alabama await the results of a historic union action
E-tail giant Amazon. com, Inc. (NASDAQ: AMZN) is make headlines again Today, after more than 3,200 employees in Bessemer, Alabama cast ballots in a union action, which translates into a 55% turnout. This emerged from a statement by the Retail, Wholesale and Department Store Union (RWDSU) on Wednesday. Workers had until March 29 to cast their ballots, with the count starting the next day. If union advocates prevail, it would be the first union in any of Amazon’s warehouses in the country – a massive change for a company that has historically been anti-union.
Wall Street doesn’t appear to be staggered on the news, and the stock appears to be quickly pushing past last month’s tech sell-off as AMZN targets its highest close since mid-February. The stock is up 1.1% to trade at $ 3,316.28 today. In April it had already increased 7%. Of course, equity has started the spring season on the right foot, and historical data from Schaeffer’s Senior Quantitative Analyst Rocky White suggests that even more growth could be expected as the second quarter progresses.
Amazon just came across the list of 25 S&P 500 members who had the best returns in the second quarter of the last 10 years. Data shows the stock makes positive quarterly returns 90% of the time and averages an impressive 13.9% pop – the fifth highest move on the list. A similar move from its current location would bring security just above the $ 3,777 level yet to be explored.
While Amazon’s share price is undoubtedly high, traders looking to speculate on the next move (and the potential for even more record highs) may want to consider options. In fact, these rewards can currently be obtained at a relative bargain price. This is because AMZN’s Schaeffer Volatility Index (SVI) is 22% below all values except for 1% in the annual range, which means that options traders are currently pricing in relatively low volatility expectations.