Amazon (AMZN) Options Signal Bullish Bias: Key Strike Levels and Trade Setups for Dec 12–19 Expirations

• AMZN trades at $229.77, down 0.87% from its 52-week high of $231.78, but technicals still show a short-term bullish trend.
• Options data reveals heavy call open interest at $240 and $235 strikes for Friday’s expiration, while block trades hint at institutional positioning.
• Guggenheim’s $300 price target and AWS AI investments suggest long-term upside, but tax settlements and layoffs add near-term noise.

The big picture? AMZN’s options market is pricing in a strong bias for a rebound above $235 this week, with key resistance at $240 acting as a psychological threshold. Here’s how to navigate the setup.Bullish Call Overload at $240 and $235: What Traders Are Bidding For

Let’s start with the numbers: 23,275 open interest at the $240 call (AMZN20251212C240) and 22,130 at $235 (AMZN20251212C235) for Friday’s expiration. That’s not just noise—it’s a vote of confidence. The call/put ratio of 0.70 (calls dominate) reinforces this, especially when you see block trades like the 830-contract put block at $240 (AMZN20251121P240) last month.

But here’s the catch: AMZN’s 30-day support sits at $228.94–$229.67. If the stock fails to hold above that zone, the $225 put (AMZN20251212P225) could see a rush of buyers. The key takeaway? The market is pricing for a short-term rally but remains cautious on downside risks.

News Flow: AI and AWS Fuel Optimism, But Tax Headaches Lurk

Amazon’s AI tools for businesses and the $50B Anthropic investment are major tailwinds. These moves position AWS as a critical player in the AI arms race, which could drive long-term growth. But the €511M tax settlement in Italy and 700 NYC layoffs add friction.

Here’s the rub: Retail investors are likely conflating these stories. The AI/AWS narrative is bullish, but the tax and labor headlines could create short-term volatility. If you’re trading options, this duality means hedging for both scenarios—leaning into calls for the AI-driven rally but keeping a put spread ready if sentiment shifts.

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

For the aggressive: Buy the AMZN20251212C235 call (strike price $235) if AMZN breaks above its Bollinger Upper Band at $242.26. The RSI at 62.25 suggests momentum isn’t exhausted yet. Target a 10–15% move by Friday’s close.

For the cautious: A collar strategy could work here. Buy the AMZN20251219C260 call (strike $260) and sell the AMZN20251219P200 put (strike $200) for next Friday’s expiration. This caps downside risk while letting you ride a potential AI-driven pop.

Stock traders: Consider entry near $230 if support holds. First target: $235 (break-even for the call buyers). Second target: $240, where heavy open interest could create a self-fulfilling prophecy. Stop below $228.69 (today’s intraday low) to cut losses.

Volatility on the Horizon: Balancing Bullish Bets and Pragmatic Hedges

AMZN’s options market is a chessboard of competing narratives. The AI/AWS story is a long-term winner, but near-term volatility from tax settlements and labor issues could create whipsaw moves.

Here’s the plan: Use the $235–$240 call strikes as your primary bullish play, but pair them with a small put position (like the $225 strike) to hedge against a surprise drop. For stock buyers, patience is key—wait for a pullback to $228.94 before committing.

The bottom line? AMZN’s fundamentals are strong, but the options data shows a market bracing for a short-term test. Play it smart: position for the rally, but keep your safety net tight.