Play a catch-up bounce in Amazon using this options strategy, Nishant Pant says

This year has been tough for stocks. Despite a strong earnings season and the tech-heavy QQQ staging a dramatic 34% recovery rally from March to June, most of the Magnificent 7 stocks have underperformed. In my book, Mean Reversion Trading , I emphasize that I am a firm believer in the premise that a rising tide lifts all boats. If the broader indexes are pushing higher, the rest of the major equities will eventually follow. With this logic in mind, I am revisiting one of the lagging Mag 7 giants for this specific trade: Amazon (AMZN), and am relying on three of my favorite technical signals to time the setup: 1. Accelerated MACD (5, 13, 5): I prefer this faster MACD setting to catch momentum pivots before the rest of the market wakes up. Although the MACD indicator is currently staging a bullish crossover, both the MACD and signal lines are tightly coiled. This specific coiled action usually leads to false positives, which is exactly why we must use other indicators as confirmation before risking capital. 2. Relative Strength Index (RSI): To provide that necessary confirmation, let's look at the RSI. Although AMZN never technically dropped into the official oversold region (which is very typical during a macro bull market), it came incredibly close. After hovering near oversold levels for the entirety of June, the RSI is now staging a sharp upward move. This aggressively confirms that institutional money is finally beginning to flow back into this tech giant. 3. …