Amazon (AMZN) Options Signal Bullish Bias: Key Strikes and Block Trades Point to $235+ Upside Potential

• AMZN trades at $232.15, down 0.1% from prior close, but sits above all major moving averages.
• Call open interest dominates at $235–$250 strikes, while block trades hint at big money bullish bets.
• Analysts target $295+ for AMZN in 2026, but near-term risks include a breakdown below $229 support.

Here’s what the options market and technicals are telling us: AMZN is primed for a short-term rally, but traders need to watch for a potential pullback if key support levels fail. The data leans upside-biased for now, but caution is warranted.

Bullish Sentiment Locked in at $235–$240 Strikes

The options market is clearly leaning bullish. For this Friday’s expirations, the top call open interest (OI) is clustered at $235 ($35,915 contracts), $237.5 ($19,568), and $240 ($17,615). This suggests a lot of money is positioned for a move above $235—a level just 1.2% above current prices. Meanwhile, puts are concentrated at $230 ($9,050) and $222.5 ($7,636), but the put/call ratio of 0.718 (for open interest) shows calls are outpacing puts by a healthy margin.

Block trades add intrigue. The largest recent trade was a buy call for AMZN20260116C250 (Jan 16, 2026 expiry, $250 strike) with 500 contracts. That’s a big bet on a sharp rally past $250. Conversely, a massive put block trade at AMZN20251121P240 (Nov 21 expiry) suggests some hedging activity for downside risks. The takeaway? Big players are hedging for a dip but are more confident in the upside.

News Flow: AWS Growth and Institutional Buys Fuel Optimism

Recent headlines align with the bullish options setup. Rothschild & Co and CCM Investment Advisers both increased stakes in AMZN, citing AWS’s AI monetization and logistics-driven retail expansion. Amazon’s Q3 revenue ($180B) and EPS ($1.95) beat estimates, reinforcing its "undervalued quality" narrative. Analysts now average a $295.50 price target—35% above current levels.

However, Ken Griffin’s shift from AMZN to AI stock PLTR introduces a wrinkle. While Amazon’s AI-driven growth is real, competition from Microsoft and Google could pressure margins. Retail investors should watch whether the stock can sustain its momentum amid these dynamics.

Actionable Trade Ideas: Calls for the Bullish, Puts for the Cautious

For options traders, the AMZN20260102C235 (Jan 2, 2026 expiry, $235 strike) is a standout. With 16,625 contracts in open interest, this strike is a sweet spot for a breakout play. If AMZN breaks above its intraday high of $232.82, this call could gain steam. For a shorter-term bet, the AMZN20251226C235 (Friday expiry) is also viable, though it offers less time for a move.

Stock traders could consider a long entry near $231.18 (intraday low) with a stop just below $229.05 (30D support). A successful rally would target $235 first, then $240. For the bearish, a put spread at $225–$230 (using AMZN20260102P230 and AMZN20260102P225) could hedge against a breakdown.

Volatility on the Horizon

Amazon’s options activity and fundamentals paint a picture of cautious optimism. The market is pricing in a potential $235+ move, but risks linger if the stock stumbles below $229. Traders should balance their exposure—using calls for upside and puts for downside protection. With AWS growth and institutional backing, AMZN’s long-term story remains intact, but near-term volatility could test its resolve. Stay nimble, and let the data guide your next move.