Amazon (AMZN) Options Signal $230–$240 Battle: Call Overhang and Whale Moves Point to Strategic Entry Zones

• AMZN plunges 1.44% to $226.96, breaking below 30D support at $229.14
• Options data shows 68% more open interest in calls vs. puts, with heavy call OI at $235–$240 strikes
• Block trades reveal $1.3M put purchase at $220 and $480K call buy at $250 ahead of 2026

The market is whispering a $230–$240 price war. AMZN’s technicals and options activity tell a story of short-term bearishness battling long-term bullish conviction. Here’s how to position for both scenarios.Bull-Bear Imbalance at Key Strikes

AMZN’s options chain is a chessboard of institutional bets. This Friday’s top OTM calls ($235–$240) hold 17,870–22,959 open contracts, while puts at $220–$225 have 9,500–13,540. The 0.70 put/call ratio (calls dominate) suggests a bearish near-term outlook but lingering long-term optimism.

Look at the whale moves: A $1.3M block trade bought puts at $220 (AMZN20251121P220) and a $480K call block at $250 (AMZN20260116C250). These aren’t random. The put hedge protects against a $220 support break, while the call bet targets a $250+ rebound.

News That Could Tilt the Scales

TD Cowen’s $300 price target and AWS AI optimism align with the call-heavy options data. Amazon’s $35B India push adds long-term tailwinds but carries execution risks. The bear case? Cloud competition and unprofitable segments could drag the stock below $220.

Actionable Trade SetupsFor Options Traders:

• Bull Play: Buy AMZN20251219C235 (next Friday’s $235 call) at $2.50–$3.00. Target $237.68 resistance breakout.
• Bear Hedge: Buy AMZN20251219P220 (next Friday’s $220 put) at $1.20–$1.50. Protect against a break below 200D support ($221.06).

For Stock Investors:

• Entry: Consider buying AMZN near $229.14 (middle Bollinger Band) if it holds.
• Target: $237.68 (resistance) if the 30D MA ($234.42) stabilizes.
• Stop: Below $225.12 (intraday low) triggers a reevaluation.

Volatility on the Horizon

Amazon’s 100D MA ($228.03) and 200D MA ($215.10) form a bullish base. If the stock closes above $237.68 this week, the $240–$242.5 call wall could fuel a $250+ run. But watch the $220–$221.06 support cluster—break that, and the $215–$218.70 range becomes the new battleground.

The options market isn’t just reacting to today’s price drop—it’s pricing in a war between short-term bears and long-term bulls. Your job? Pick your side before the $230–$240 battle decides the next chapter.