Amazon (AMZN) Options Signal Bullish Bias: Key Strikes and Trade Setups for Dec 12, 2025

• AMZN trades at $226.58, down 1.6% from its 52-week high of $230.28, but remains above its 200D MA of $215.10.
• Call open interest dominates at strikes like $232.5, $240, and $260, while puts cluster at $225 and $220.
• Block trades hint at big money positioning: a 500-lot buy of AMZN20260116C250 and a 1,000-lot put purchase at AMZN20250919P220.
• Analysts at TD Cowen and others see AWS, AI, and India expansion as catalysts for a $300 price target.

The options market is whispering a bullish story, even as the stock dips. With calls outpacing puts by a 1.43:1 ratio and heavy positioning above $230, traders are pricing in a rebound. But the short-term technicals—like a breakdown below key support at $229—add tension. Let’s break it down.Bullish Calls vs. Defensive Puts: What the Options Say

The options chain is a chessboard of expectations. This Friday’s top call strikes ($232.5, $240) and next week’s $260 and $270 calls show investors are hedging for a rebound. The AMZN20251219C260 call, with 59,933 open contracts, is a standout—it’s like a crowd betting on a $260+ bounce by December 19.

But don’t ignore the puts. The $225 and $220 strikes have 13,540 and 9,500 open contracts, respectively. That’s a safety net for a potential drop to the 200D MA. The block trade at AMZN20250919P220 (1,000 contracts) suggests institutional players are bracing for a $220 floor.

News Flow: Fuel for the Bull Case

The headlines are a mixed bag. TD Cowen’s $300 target and AWS’s $34B Q3 capex are bullish, but the India investment carries execution risks. Here’s the kicker: the market is pricing in AWS’s AI-driven growth and India’s long-term potential, even if near-term volatility from regulatory hurdles or margin pressures exists.

Retail investors might be underestimating how Amazon’s $2.45T market cap justifies a forward P/E of 29.51. The $35B India push isn’t just about e-commerce—it’s about capturing high-margin AI and cloud infrastructure. That’s a narrative options buyers are betting on.

Actionable Trade Ideas: Calls, Puts, and Price Levels

For options traders, consider these setups:

• This Friday (Dec 12): Buy AMZN20251212C235 if the stock holds above $229. Target a $237.68 breakout (resistance) with a stop below $225.
• Next Friday (Dec 19): Buy AMZN20251219C260 if the price closes above $237.68. This call has 59,933 open contracts—massive liquidity for a potential rally.
• Puts for Protection: A put spread at $225 and $220 (e.g., AMZN20251219P225 + AMZN20251219P220) could hedge a long stock position.

For stock traders, here’s the plan:

• Entry: Consider buying AMZN near $229 if it holds above the 30D MA (228.94). A close above $237.68 would validate the bullish case.
• Exit: Target $244 (Bollinger Upper Band) or $230 (intraday high) if the rebound stalls.

Volatility on the Horizon

The next 72 hours will test AMZN’s resolve. A break below $225 could trigger a test of the 200D MA, but the options market is pricing in a rebound. The key is whether the $229 support holds—failure there might force a reevaluation of the bullish thesis.

For now, the data points to a stock caught between short-term bears and long-term bulls. The options activity leans heavily on the latter. If you’re willing to ride the volatility, AMZN offers a mix of high-risk, high-reward setups—and a chance to play the AI and India narratives that could redefine its growth story in 2026.