Amazon (AMZN) Options Signal Bullish Bias: Focus on $240 Call OI and Strategic Entry Points for 2026

• AMZN trades at $231.52, down 0.43% from $232.52, with intraday support at $230.77 and resistance near $232.60.
• Open interest favors calls (2.4M) over puts (1.8M), with the put/call ratio at 0.74, hinting at aggressive bullish positioning.
• Block trades show a $500K buy of the AMZN20260116C250 call and a $1.35M put trade at the $240 strike, signaling mixed institutional bets.

The options market is whispering a story of cautious optimism. Despite a slight dip today, AMZN’s technicals and options flow suggest a high probability of a rebound—especially with heavy call open interest at key strikes. Here’s how to navigate the setup.Bullish OI Clusters and Whale Moves: What’s Cooking at $240?

Let’s start with the numbers: 20,673 open calls at the $240 strike (this Friday’s expiration) and a block trade buying 500 of the AMZN20260116C250 calls for $960 each. That’s not random noise—it’s a signal. The call skew suggests institutional players are hedging for a mid-2026 rally, while retail traders are stacking up near-term bullish bets at $235–$240.

But don’t ignore the puts. The $215 and $230 strikes have 8,244 and 6,691 open contracts, respectively. A breakdown below $228.15 (200D MA) could trigger panic selling. The key takeaway? The market is pricing in a $235–$245 range battle, with heavy money guarding the upside.

News Flow: India’s $35B Bet vs. Italy’s Drone Woes

Amazon’s $35 billion India push and AWS’s Graviton5 launch are major tailwinds. These stories justify the bullish options flow—especially for long-term holders. But the Italy drone shutdown and AWS outage risks add friction. Here’s the twist: the market already priced in the negatives. The recent block trades suggest investors are betting on the India/AWS narrative outweighing the hiccups.

Consumer perception matters too. Same-day grocery delivery expansion and AI job creation in India are tangible wins. If AWS’s reliability improves post-outage, the stock could see a re-rating. For now, the news isn’t a headwind—it’s a backdrop for the options-driven optimism.

Trade Ideas: Calls for January, Stock for Precision EntriesOption Play: Buy the AMZN20260102C240 call (OI: 20,673) at $1.50–$1.70. Target $245 (5% move) by Jan 2. Why? The $240 strike is a liquidity magnet, and a breakout above $237.5 (Bollinger middle band) could trigger a cascade of stop-loss buying.Alternative: A bull call spread with AMZN20260102C235 (buy) and AMZN20260102C245 (sell) to reduce cost. Caps risk while capitalizing on the $235–$245 range fight.Stock Play: Consider entry near $230.77 (intraday low) if support holds. Target $237.5 (Bollinger upper band) with a stop-loss below $228.15 (200D MA). A close above $232.6 (intraday high) would validate the bullish case.Volatility on the Horizon: Balancing Bullish Bets and Caution

Amazon’s options market is a tug-of-war between short-term optimism and long-term strategic bets. The $240 call OI and block trades suggest a 60–70% chance of a $235–$245 consolidation by mid-January. But don’t ignore the $215 put OI—it’s a red flag if AMZN dips below $222.45 (30D support).

Bottom line: This is a stock with momentum on its side, but the path isn’t straight. Use the options flow as a guide—stack calls at $240 for a January rally, but keep a tight stop below $228.15. The next few weeks could be a masterclass in volatility trading.