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So let's look at a couple of ways to limit your risk if you're long Amazon now.Adding Downside Protection To Amazon Let's assume you're long 100 shares of AMZN and are unwilling to risk a decline greater than 20% over the next several months. Here are two ways of hedging it (screen captures below are via the next version of the Portfolio Armor iPhone app).Uncapped Upside, Positive CostAs of Friday's close, these were the optimal puts to hedge 100 shares of AMZN against a >20% decline by late October.As you can see above, the cost here was $3,205, or 2.04%, calculated conservatively, using the ask price of the puts. By the way, the basic version of the Portfolio iPhone app, which allows you to find optimal puts like the one above, is now free to download.Capped Upside, Negative CostIf you were willing to cap your upside at 20%, iPhone Cases sale this was the optimal collar to hedge against the same >20% decline over the same time frame.There are two things dif

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