Amazon (AMZN) Options Signal Bullish Bias: Key Strikes and Trade Setups for Dec 5 Expiry

• AMZN trades at $228.78, down 1.55% from its 52-week high of $258.60
• Call open interest dominates at $240–$250 strikes, with puts clustering at $220–$225
• Analysts raised price targets to $305–$360, while insiders sold $4.3M in shares
• Here’s what the options flow and technicals tell us: AMZN is primed for a rebound—or a sharp correction. Let’s break it down.

Where the Money Is Flowing: Calls at $240, Puts at $225

AMZN’s options chain is a chessboard of bets. This Friday’s top call open interest piles up at $240 (29,586 contracts), $245 (25,756), and $235 (25,285), while puts cluster at $225 (10,649) and $220 (6,146). The put/call ratio of 0.69 (calls > puts) screams bullishness, but don’t ignore the puts—they’re a hedge against a potential drop below $225.

Block trades add intrigue. A 500-lot buy of the AMZN20260116C250 call (expiring Jan 16, 2026) suggests long-term conviction. Meanwhile, a 830-lot trade in the AMZN20251121P240 put (expiring Nov 21) hints at short-term bearish positioning. The message? Bulls are stacking up for a rally, but bears aren’t entirely out of the game.

News That Could Tip the Scales

Amazon’s AI push and AWS expansion are fueling analyst optimism. Oppenheimer’s $305 target and Loop Capital’s $360 call are no fluke—AWS’s 2027 capacity plans and Trainium3 chip could supercharge growth. But here’s the catch: ending the USPS contract by 2026 might disrupt logistics costs. Traders are pricing in the AI win, but the shipping shift could create short-term volatility.

The insider sale by CEO Jassy? A red herring or a signal? He still owns 2.2 million shares, so this looks more like portfolio rebalancing than a bearish bet. For now, the news flow leans bullish, but keep an eye on operational execution risks.

Trade Ideas: Calls at $240, Puts at $225, and a Stock Play

For options traders:

• This Friday: Buy the AMZN20251205C240 call if AMZN breaks above $228.78. The $240 strike has 29,586 contracts in OI—liquidity is your friend here. Target a close above $245 by expiry.
• Next Friday: Consider the AMZN20251212C250 call if the stock rebounds to $235. The $250 strike has 10,713 OI and aligns with analyst price targets.

For stock players:

• Entry near $225 if AMZN holds above its 200D MA ($214.75). First target: $235 (30D support). Second target: $245 (call-heavy zone).
• Bearish hedge: Sell the AMZN20251205P225 put if the price dips below $228.31. The $225 strike has 10,649 OI and acts as a psychological floor.

Volatility on the Horizon

AMZN’s RSI at 37.6 suggests oversold conditions, but the MACD histogram (-0.05) warns of fading momentum. The stock is caught between a short-term bullish trend and a long-term bull setup. If it holds above $221 (200D support), the bulls regain control. Below that? Watch the puts at $220–$215 kick in.

Bottom line: This is a high-conviction trade. The options market is betting on a rebound, analysts are raising targets, and AI-driven growth is real. But don’t ignore the puts—they’re there for a reason. Play it smart: size your positions to match your risk tolerance, and keep a close eye on the $225 level. The next 72 hours could tell us if AMZN’s dip is a buying opportunity or a warning shot.