Amazon (AMZN) Options Signal $230–$240 Bullish Bias Amid Oversold Technicals: A Strategic Entry Play for Upcoming Volatility

• AMZN’s current price of $220.45 sits near the lower Bollinger Band at $218.87, suggesting potential for a rebound.
• Options data reveals a 0.704 put/call open interest ratio, with heavy call OI at $230–$240 and bearish MACD (-1.24) and RSI (31.49) indicators.
• Block trades in deep out-of-the-money puts and calls (e.g., AMZN20260116P230, AMZN20260116C250) hint at institutional positioning ahead of key catalysts.

The confluence of oversold technicals, skewed options positioning, and strategic block trades points to a high-probability scenario for a short-term rebound in AMZN. While regulatory headwinds persist, the stock’s discounted valuation and bullish options flow suggest a tactical entry window for traders targeting a $230–$240 breakout.

Decoding the Options Imbalance and Whale Moves

The options market is painting a clear picture of asymmetric positioning. For Friday expiration, $230 calls (OI: 34,333) and $240 calls (OI: 22,413) dominate the open interest leaderboard, while $220 puts (OI: 15,038) and $215 puts (OI: 10,487) show bearish interest. This 2.3x call/put OI ratio at key strikes suggests aggressive bullish bets, particularly in the $230–$240 range. The next Friday’s options chain reinforces this bias, with $240 calls (OI: 23,165) and $235 calls (OI: 22,226) leading the charge.

Block trades add another layer of intrigue. The AMZN20260116C250 call (buy to open, $480,000 turnover) and AMZN20250919P220 put (buy to open, $28,000 turnover) indicate strategic hedging or speculative positioning. Meanwhile, the AMZN20251121P240 put (830 contracts, $1.35M turnover) suggests a bearish hedge against a potential $240+ move. These moves highlight a tug-of-war between bulls targeting a breakout and bears guarding against overextension.

News Flow: Regulatory Headwinds vs. Strategic Resilience

The $2.5B FTC settlement and UK grocery exit are near-term risks, but they’re counterbalanced by Wells Fargo’s “Overweight” upgrade and AWS’s cloud dominance. The AI tools for sellers and logistics expansion in Australia signal operational resilience. However, the AWS CEO’s criticism of product rollout delays and the AGI executive’s departure raise questions about execution risks. Investors must weigh these factors: while the news flow is mixed, the options market’s bullish skew suggests traders are pricing in a rebound despite regulatory noise.

Actionable Trade Setups: Calls, Puts, and Precision Entries

For options traders, the AMZN20240920C230 (Friday expiration, $230 strike) and AMZN20240927C240 (next Friday, $240 strike) offer compelling setups. The $230 call is attractively priced if AMZN breaks above its 30D MA ($229.03) and tests the $231.41 resistance. The $240 call, though more expensive, becomes viable if the stock closes above $235 next week, leveraging the high OI at that level as a liquidity magnet.

Stock traders should consider entries near $218.87 (lower Bollinger Band) with a stop below $217.50. A successful rebound could target $230–$231.50, where the 30D MA and 200D support/resistance overlap. For risk-averse positions, a $220 put (strike aligns with OI-heavy $220 level) could hedge against a breakdown below $218.87.Volatility on the Horizon: Navigating the AMZN Crossroads

The coming weeks will test AMZN’s ability to balance regulatory pressures with operational execution. The options market’s bullish bias and technical indicators suggest a short-term rebound is likely, but the $230–$240 range could become a battleground for longer-term direction. Traders should monitor the AMZN20260116C250 call and AMZN20260116P230 put for clues on institutional sentiment. If the stock fails to hold above $218.87, the bearish RSI and MACD could gain momentum, but the current data favors a tactical long bias with tight risk management.