🐋 AMZN Flash Back: The $83M Put Protection Whale Net $26.2M Despite Hedging Costs
Institutional whale deployed $83M in AMZN put protection on Sept 18. The Sep 26 $255 puts generated $27.4M profit (+51.7%), while Sep 19 $245 puts cost $1.2M as hedging. Net profit: $26.2M (+31.5%) from this 10/10 unusual activity trade.
Originally Published: September 18, 2025 | Flash Back Analysis: September 25, 2025
📊 Read the Original $83M AMZN Institutional Whale Trade Analysis →
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🎯 The Whale That Called Amazon's Perfect Top
Remember that MASSIVE $83 MILLION AMZN put protection trade we flagged on September 18th? The institutional whale that loaded up on deep in-the-money puts right before earnings? Well, pull up your screens - this whale is up $26.2 MILLION NET despite paying $1.2M in hedging costs on the Sep 19 puts! The Sep 26 puts alone generated $27.4M - this is why tracking unprecedented institutional activity pays off.
📈 What Actually Happened
The Trade Recap: - September 18: Whale deployed $83M in put protection at $231.42 - September 19: $245 puts expire (1-day hedge) - $1.2M hedging cost - September 18-25: Market volatility intensifies, tech sector wobbles - September 25: $255 puts surge +51.7% in value - Net Profit: $26.2M net profit (+31.5% return on $83M)
🔥 The Numbers Are STAGGERING
The Whale's Original Position (Stock at $231.42):
Institutional Put Protection:
- Bought 23,000 $255 puts (Sep 26) for $53M
- Bought 24,000 $245 puts (Sep 19) for $30M
- Total Investment: $83 MILLION
Current Values (7 days later):
| Position | Entry Value | Current Value | Contracts | P&L |
|---|---|---|---|---|
| Sep 26 $255 Puts | $53M | $80.4M | 23,000 | +$27.4M (+51.7%) |
| Sep 19 $245 Puts | $30M | $28.8M (Expired) | 24,000 | -$1.2M (-4.0%) |
| NET P&L | $83M | $109.2M | 47,000 | +$26.2M (+31.5%) |
🧮 The Calculation Breakdown (Show Your Work)
Sep 26 $255 Put Position (Still Open): - Original premium paid: $53,000,000 (23,000 contracts @ $23.04) - Current option price: $34.95 (ThetaData verified) - Current position value: $34.95 × 23,000 × 100 = $80,385,000 - Unrealized Gain: +$27,385,000 (+51.7%)
Sep 19 $245 Put Position (Expired Next Day - Hedging Cost): - Original premium paid: $30,000,000 (24,000 contracts @ $12.50) - Intrinsic value at expiry: $12.00 (Stock at ~$233, barely moved) - Final recovery value: $12.00 × 24,000 × 100 = $28,800,000 - Realized Loss: -$1,200,000 (-4.0%) ← Intentional hedging cost
Combined Metrics: - Time in trade: 7 days - Net return: +31.5% - Daily return: +4.5% - Hedging cost: $1.2M for immediate protection - Net profit after hedging: $26.2M
💡 Why This Trade Was GENIUS
- Dual Strategy: Sep 19 puts for immediate protection, Sep 26 for sustained hedge
- Strike Selection: $255 puts were already $23.58 in-the-money at entry
- Risk Management: Willing to pay $1.2M hedging cost for downside protection
- Net Winner: Despite hedging costs, still up $26.2M (+31.5%)
🎓 The Lesson for Retail Traders
When institutions deploy $83 MILLION in UNPRECEDENTED put volume with a 10/10 unusual score, they're not gambling - they're protecting massive long positions or betting on a significant move. The smart money doesn't throw around eight figures without conviction.
What We Learned: - Institutions use multi-layered hedging strategies (1-day + weekly protection) - They're willing to pay hedging costs (Sep 19 loss) for protection - The Sep 26 puts more than compensated for the hedging expense - Net result: +31.5% return despite paying for insurance
📊 What Happens Next?
The Sep 26 $255 puts still have 1 day until expiration with $34.95 of intrinsic value. With AMZN trading well below the strike, these puts are printing money every tick lower. The whale could:
- Exercise for shares - Take delivery of 2.3M shares at $255
- Roll to October - Extend protection through earnings
- Close for profit - Bank the $27.4M and redeploy
🚨 Track More Whale Trades
This AMZN whale trade had all our signature indicators: - ✅ 10/10 Unusual Activity Score - ✅ Massive premium ($83M combined) - ✅ Institutional-sized blocks - ✅ Strategic strike selection - ✅ Pre-earnings positioning
💡 Join investors and traders who stopped guessing and started tracking institutional option flows. When whales move $25M+ in a single day, there's always a reason. See our premium daily analysis sample and proven flashback trades that caught major moves before they happened. Don't be the last to know.
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