Amazon (AMZN) Options Signal Bullish Bias: Calls at $250 Dominate as AI Growth Drives Momentum

• Call open interest surges at $235–$250 strikes, with 13,829 contracts set to expire Jan 16.
• Block trades show $480K bought in AMZN20260116C250 calls, hinting at big money bullish bets.
• RSI at 40.3 suggests oversold rebound potential, while Bollinger Bands show price near upper bound.

Here’s the takeaway: AMZN’s options market is screaming upside potential. The call/put ratio (0.71) and heavy call open interest at $235–$250 strikes align with Amazon’s AI-driven growth narrative. If you’re not already positioned for a breakout above $235, today’s the day to rethink your stance.

Bullish Sentiment Locked in OTM Calls and Whale Moves

The options chain tells a clear story. For this Friday’s expirations, calls at $235 ($26,404 OI) and $240 ($17,785 OI) dominate, while next Friday’s data shows even stronger demand at $250 ($13,829 OI). This isn’t just retail frenzy—block trades like the AMZN20260116C250 call purchase ($480K for 500 contracts) scream institutional confidence.

Meanwhile, puts at $222.5 ($9,451 OI) and $220 ($8,496 OI) offer a safety net, but the skew is clearly to the upside. Think of it like a seesaw: the heavier weight on the call side means the market expects a bounce. But don’t ignore the risk—those deep puts at $175 ($5,437 OI) hint at extreme downside fear, just in case AI hype falters.

News Flow Fuels the Bull Case

Amazon’s Q3 results and AI bets are the rocket fuel here. AWS’s 20.2% growth, $38B OpenAI partnership, and Trainium3 chips aren’t just buzzwords—they’re real infrastructure bets. Analysts like Citi ($320 target) and Morgan Stanley ($315) are piling in, and institutional ownership hit 72.2%.

But here’s the catch: the market’s already priced in much of this optimism. If AWS misses its 19% growth forecast or regulators crack down on AI labor impacts, the $220–$222 support zone (200D MA at $221.09) becomes critical. Retailers love the AI-powered Rufus tool? That’s a win. But if consumer adoption slows, the rally could stall.

Actionable Trades: Calls, Breakouts, and Strategic Puts

For options players, the AMZN20260116C235 and AMZN20260116C250 strikes are prime. With AMZN trading at $231.45, the $235 call offers a 1.5% buffer above current price, while the $250 call (currently OTM) could explode if AWS’s Q4 guidance hits. For stock buyers, consider entries near $228.48 (middle Bollinger Band) with a target at $235. If you’re hedging, the AMZN20260116P220 put ($4,750 OI) offers cheap insurance below key support.

Volatility on the Horizon

Amazon’s at a crossroads. The technicals, options flow, and news all point to a bullish inflection—but only if AWS’s AI momentum holds. Keep an eye on the $235 resistance (30D MA at $229.98) and the $221.09 lower Bollinger Band. If AMZN breaks above $235 with volume, this could be the start of a multi-week rally. But if it falters, the puts at $220–$222 could become a lifeline. Either way, the next 72 hours will tell us if this is a parabolic move or a false dawn.