Amazon (AMZN) Options Signal Bullish Bias: Calls at $235–$240 Dominate as AI Expansion and Earnings Drive Momentum

• Amazon’s Q4 revenue hit $150B, with AWS growth and a $4.5B AI acquisition fueling optimism.
• Options data shows a 0.71 put/call open interest ratio, with heavy call volume at $235–$240 strikes.
• Block trades hint at whale activity: A 500-lot call buy at $250 (expiring Jan 16) and a 1,000-lot put purchase at $220.

Here’s the takeaway: AMZN’s options market is leaning hard into a bullish narrative. With the stock trading at $230.44—up 0.88% intraday—and technical indicators like the RSI (40.33) hinting at a potential rebound, the stage is set for a short-term breakout. But let’s dig into why this isn’t just noise.

Bullish Sentiment Locked in Call Options, but Risks Lurk Below $222

The options chain tells a clear story. This Friday’s top call open interest is clustered at $235, $237.5, and $240 strikes, with 26,404 contracts at $235 alone. That’s not just retail noise—it’s institutional positioning. Meanwhile, puts are piling up at $222.5 and $225, with 9,451 and 9,388 contracts respectively. The 0.71 put/call ratio (for open interest) suggests a bearish undercurrent, but the sheer volume of calls implies conviction in a near-term rally.

Block trades add intrigue. A 500-lot buy of the AMZN20260116C250 call (expiring Jan 16) signals a whale betting on a sharp move above $250. Conversely, a 1,000-lot put purchase at $220 (AMZN20250919P220) hints at hedging activity. The message? Bulls are stacking up for a push, but caution is warranted if the stock dips below $222.5.

News Flow: AI and Earnings Fuel the Fire, but EU Fines Add Friction

Amazon’s recent headlines are a mixed bag. The $4.5B Anthropic acquisition and $10B buyback are tailwinds, as is AWS’s 15% Q4 revenue growth. But the EU’s $2B antitrust fine could create short-term headwinds, especially if the company appeals. Retail investors are likely discounting the fine’s impact, given the stock’s 25% YTD gain and strong holiday sales. Still, keep an eye on regulatory risks—this isn’t a zero-sum game.

Actionable Trades: Calls for the Breakout, Puts for the Safety Net

For options traders, the AMZN20260116C235 and AMZN20260116C240 strikes (next Friday’s expirations) are prime candidates. With 10,467 and 13,152 contracts in open interest, these strikes represent a sweet spot between probability and reward. If you’re bullish, buying these calls could capitalize on a potential push toward $240+ as AI integration gains traction.

For stock traders, consider entry near $228.48 (the middle Bollinger Band) with a stop just below $222.25 (30D support). A breakout above $232.5 (a key call strike) could target $235–$240. On the downside, a put spread at $222.5–$225 could hedge against a pullback, especially if the EU fine resurfaces in headlines.

Volatility on the Horizon: Ride the Bull Wave, But Stay Grounded

Amazon’s options and fundamentals are aligned for a bullish push—driven by AI, cloud growth, and a robust buyback. But don’t ignore the puts at $222.5. This is where sentiment could flip if the stock stumbles. The key is to balance aggression with caution: let the calls play out if AMZN holds above $228.48, but lock in protection if it dips. With earnings optimism and whale activity in play, this is a setup worth watching closely.