Amazon Put Options at Lower Strikes Offer High Yields Amid Stock Decline (AMZN)

Amazon shares fell 10.7% to $198.79 on February 13, 2026, following its Q4 earnings, pushing at-the-money and out-of-the-money put options to high premiums. Investors can capitalize on elevated yields by selling lower-strike puts, with the March 20, 2026, $170 put offering a 0.6765% monthly yield and a breakeven buy-in at $168.85. A conservative strategy—selling the $200 put and buying the $195 put—generates a 1.125% yield while capping downside risk. Expected returns suggest OTM puts outperform ATM alternatives given a 40% probability of AMZN reaching $170 within one month.