Amazon (AMZN) Options Signal Bullish Bias: Key Strikes and Trade Setups for Dec 19 Expiry

• AMZN’s price dropped 1.48% to $222.85, trading near its 200D MA ($215.19) but below critical support at $221.06.
• Options data shows call open interest dominance at $260, $270, and $300 strikes, while puts cluster at $200 and $220.
• Guggenheim’s $300 price target and India expansion plans clash with short-term technical headwinds.

Here’s the thing: AMZN’s options market is screaming bullish bias, but the stock’s short-term bearish momentum and key support/resistance levels mean traders need to tread carefully. Let’s break it down.

Bullish Call OI vs. Defensive Put Bets: What the Options Say

AMZN’s options chain is a mixed bag. Call open interest is massive at $260, $270, and $300 (expiring Dec 19), with the $300 strike alone holding 51,408 contracts. That’s not just noise—it’s a sign big players are pricing in a sharp rebound. But don’t ignore the puts: $200 and $220 strikes have 25,593 and 21,628 open contracts, respectively. Think of it like this: bulls are betting on a break above $228.93 (30D support), while bears are hedging a drop below $221.06 (200D support).

Block trades add intrigue. The AMZN20251121P240 put ($240 strike, expiring Nov 21) saw a $1.35M block trade, and the AMZN20260116C250 call ($250 strike, Jan 16 expiry) was bought for $480K. These moves hint at long-term positioning—investors are either hedging a near-term dip or stacking up for a 2026 rally.

News vs. Charts: Can Guggenheim’s $300 Target Make a Difference?

Guggenheim’s recent "Buy" rating with a $300 target isn’t just a headline. Amazon’s India push—$35B in AI/cloud infrastructure by 2030—could fuel growth, especially if AWS continues outperforming. But here’s the catch: the stock’s 3% YTD gain lags the S&P 500’s 16%, and its 31.43 P/E is still below the market average. Retail investors might be wary of regulatory risks and labor issues, but institutional ownership at 72.2% suggests big money isn’t fleeing.

Actionable Trade Ideas: Calls, Puts, and Price Levels to Watch

For options traders: AMZN20251219C235 ($235 call, 50,162 OI) and AMZN20251219C240 ($240 call, 43,080 OI) are prime candidates if AMZN breaks above $228.93. These strikes align with the 30D support/resistance zone and could see a pop if the stock reclaims its 100D MA ($228.01). For next week, eye AMZN20251226C250 ($250 call, 9,615 OI) as a longer-term play.

Stock traders: Consider entry near $222.85 (current price) with a stop-loss below $221.06. If AMZN holds here, target $235 (RSI 58.18 suggests room to rise). On the downside, a put spread at AMZN20251219P220 ($220 put) and AMZN20251219P200 ($200 put) could hedge a 5% drop.

Volatility on the Horizon: Balancing Bullish Bets and Risk

AMZN isn’t a one-way bet. The 0.71 put/call ratio (calls dominate) and heavy call OI at $300 suggest optimism, but the stock’s 1.48% drop today and proximity to its 200D MA mean volatility is likely. Traders should watch the Dec 19 expiry closely—those $260 and $300 calls could either ignite a rally or fade into irrelevance if the stock stays below $228.93. Either way, the options market is pricing in a story: Amazon’s long-term potential is intact, but patience is key in the short term.