Amazon (AMZN) Options Signal Bullish Breakout: Focus on $250 Call Wall and Institutional Buying

• AMZN trades at $247.83, up 0.18% with RSI near overbought 80.70
• Call open interest dominates at $250 and $260 strikes ahead of Friday expiry
• Institutional buying and AWS autonomous vehicle news fuel momentum

Here’s the takeaway: AMZN’s options market and technicals are painting a clear picture of upside potential. The stock is perched above key moving averages with a 3.54 MACD and a call/put open interest ratio of 1.35 (bullish skew). Let’s break down why this $250 strike wall matters and how to position for it.

Bullish Imbalance at $250 and Institutional Moves

The options market is fixated on the $250 level. This Friday’s expiration shows 62,734 open calls at AMZN20260116C250, dwarfing put interest at $225 (28,583 OI). Even more telling: a 450-lot block trade in AMZN20260116C232.5 (strike $232.50) moved $690k Thursday.

This isn’t just retail frenzy. The put/call ratio of 0.745 (based on open interest) shows institutional players are heavily loading up on calls. But don’t ignore the risk: if AMZN falters below its 30-day moving average ($231.39), those $225 puts could create a 7% downside catalyst.

News That Fuels the Fire

Cantor Fitzgerald’s Overweight upgrade isn’t just another note—it’s a green light for AWS growth. Amazon’s partnership with Aumovio to power autonomous trucks? That’s real revenue catalyst for AWS, which makes up 14% of AMZN’s market cap.

Meanwhile, Mather Group’s 4.1% position increase adds credibility. But here’s the twist: insider selling (like CEO Herrington’s 2,500 shares) doesn’t always mean bearishness. Insiders often diversify holdings during strong runs—this could even be a buying opportunity.

Actionable Trades for Today

For options traders:

• Aggressive play: Buy AMZN20260116C250 if AMZN breaks $248.48 (intraday high). Target $265+ by expiry.
• Conservative play: Sell AMZN20260116P225 for premium capture if price holds above $240.

For stock players:

• Entry: Consider buying AMZN near $247.50 if it holds above the upper Bollinger Band ($246.44).
• Stop: Below $240 (200-day MA at $218.10 is ultimate support).
• Target: $255 by Jan 16th, $270 by Feb 20th (aligns with block trade-heavy AMZN20260220C265).

Volatility on the Horizon

The next 72 hours will test AMZN’s resolve. A close above $248.48 could trigger a short-term parabolic move, leveraging both the $250 call wall and AWS narrative. But watch that RSI—80.70 is dangerously close to overbought territory. If AMZN whipsaws below $246.24 (intraday low), expect profit-taking in those $250-$260 calls.

Bottom line: This is a high-conviction bullish setup, but one that demands tight risk management. The options data and news flow align—now it’s about execution timing.