Amazon (AMZN) Options Signal Bullish Bias: Key Call Strikes and Block Trades Point to $240+ Upside Potential

• AMZN trades at $231.68, down 0.36% from its 52-week high but still above all major moving averages.
• Call open interest dominates (put/call ratio: 0.74), with heavy concentration at $235–$240 strikes.
• Block trades show a $500K+ call purchase at the $250 strike and a $1.35M put trade at the $240 strike.

Here’s the takeaway: The options market is pricing in a strong bias for a $240+ move by early January, but volatility could spike if support breaks. Let’s dig into why this matters for your strategy.

Bullish Sentiment Locked in Call Strikes and Whale Moves

The options chain tells a clear story. For this Friday’s expiration, AMZN20260102C235 and AMZN20260102C240 have 23,099 and 20,673 open contracts respectively—nearly double the next strikes. This suggests institutional players are hedging or positioning for a short-term pop. Meanwhile, the $240 put block trade (AMZN20260116P240) hints at cautious downside protection, but the sheer volume of calls outweighs it.

The bigger picture? A $235–$240 price corridor is where the market sees near-term inflection. If AMZN holds above its 30D support at $222.45, the call-heavy OI could push it toward the upper Bollinger Band at $236.89. But watch the $230.77 intraday low—if it breaks, the 200D support at $221.06 becomes critical.

Fundamental Catalysts Fueling the Bull Case

Amazon’s Q3 earnings weren’t just strong—they were relentless. AWS grew 20% YoY to $33B, advertising hit $17.7B, and the $35B India investment signals long-term AI dominance. Analysts aren’t just optimistic; they’re pricing in a $295.50 average target, a 27% upside from current levels.

The options market isn’t ignoring this. The $250 call block trade (AMZN20260116C250) aligns with analyst price targets, while the recent $1.35M put trade at $240 suggests some big players are hedging against a short-term pullback. Combine this with Parcion Private Wealth’s 7.5% stake increase and institutional ownership at 72.2%, and you’ve got a stock where smart money is leaning in.

Actionable Trades for Today: Calls, Breakouts, and Strategic Stops

1. Options Play: Buy AMZN20260102C235 (strike price: $235, expiration: Jan 2). Rationale: High open interest and alignment with Bollinger Band resistance. Target exit at $240–$242.50 if AMZN breaks above its 100D MA ($228.15).
2. Stock Play: Enter long near $230.77 (intraday low) with a stop below $229.08 (middle Bollinger Band). Target $236.89 (upper band) or $240 (call-heavy zone).
3. Bear Hedge: Buy AMZN20260102P230 (strike: $230) for downside protection if the RSI dips below 50.

Volatility on the Horizon: What to Watch

Amazon’s AI capex and regulatory risks linger, but the fundamentals are firing on all cylinders. If the $235–$240 call strikes hold, this could be the catalyst for a $295+ move by Q1. However, a break below $229.08 would force a reevaluation—use the 200D support at $221.06 as a final guardrail.

The message is clear: The options market and fundamentals are in sync. Now it’s about execution. Pick your strike, set your stops, and let the momentum do the work.