Amazon (AMZN) Options Signal Bullish Bias: Focus on $235 Calls and $230 Puts as AI Growth Fuels 2026 Momentum

• Options activity favors calls: Open interest in OTM $235 and $240 calls (this Friday’s exp) outpaces puts, with a put/call ratio of 0.72.
• Block trades hint at big moves: A 500-lot buy of the $250 Jan 16 call and 385-lot buy of the $230 Jan 16 put suggest institutional positioning.
• Technical setup is bullish: AMZN trades above all major moving averages, with RSI at 55.5 and MACD flipping to positive.

Here’s the takeaway: AMZN’s options market and technicals align on a bullish bias, but downside risks linger near $222.50. Let’s break it down.Bullish Call OI and Block Trades Signal Institutional Confidence

The options chain tells a clear story: traders are betting on a rally. For this Friday’s expirations, the $235 call (OI: 35,915) and $240 call (OI: 17,615) dominate, while puts like the $230 (OI: 9,050) and $222.50 (OI: 7,636) offer smaller downside hedges. The put/call ratio of 0.72 (calls > puts) reinforces this skew.

But it’s the block trades that catch attention. A 500-lot buy of the AMZN20260116C250 call (Jan 16 exp) suggests someone is banking on a sharp rally above $250. Meanwhile, a 385-lot buy of the AMZN20260116P230 put (same expiry) hints at a hedging strategy—protecting against a drop to $230 while staying bullish on the upside.

Company News: AI Growth and Institutional Buying Justify the Bull Case

Amazon’s Q3 results and strategic moves back the options narrative. AWS’s 20% YoY growth, AI-driven e-commerce gains, and the launch of Nova 2/Trainium3 chips show the company is doubling down on its cloud and AI dominance. Analysts at Zacks and others rate AMZN a “Strong Buy,” with a $295.50 price target.

Institutional investors are also leaning in. Thomasville National Bank increased its stake by 0.7% in Q3, and Citadel’s Ken Griffin—despite selling 1.6M shares—still holds a top 10 position. The key risk? Regulatory headwinds and AWS outages could dampen momentum, but the fundamentals remain robust.

Actionable Trade Ideas: Calls for the Rally, Puts for the Safety Net

For options traders, the AMZN20260102C235 (next Friday’s $235 call) and AMZN20260102C240 (next Friday’s $240 call) are prime candidates. These strikes align with heavy open interest and the 30D support/resistance zone ($229.05–$229.59). If AMZN breaks above $232.99 (intraday high), these calls could gain steam.

For downside protection, the AMZN20260102P230 put offers a hedge if the stock dips toward the 200D support at $221.06. A bullish investor might pair a long $235 call with a short $230 put to reduce cost, betting on a $235+ move while capping losses.

Stock traders should consider entry near $229.05 (30D support) with a target at $236.55 (upper Bollinger Band). A break below $228.91 (middle BB) would signal caution, while a close above $233 confirms the bullish trend.

Volatility on the Horizon: Positioning for Amazon’s 2026 AI-Driven Ascent

AMZN’s options and fundamentals point to a stock primed for a rally in early 2026. The call-heavy open interest and block trades suggest smart money is positioning for a breakout above $240, fueled by AWS’s AI momentum. However, the $230–$222.50 zone remains a critical battleground.

For now, traders should watch the AMZN20260116C250 and AMZN20260116P230 block trades closely. If the stock holds above $228.91 and RSI crosses 55.5 higher, the bull case strengthens. But if the 200D support at $221.06 breaks, the puts gain urgency.

Bottom line: AMZN is a high-conviction trade for 2026. The options market and company trajectory align—now it’s about timing the entry and managing risk.