Amazon (AMZN) Options Signal Bullish Breakout Potential: Focus on $250 Call Wall and 2026-01-16 Expiry

• AMZN trades at $247.79, up 0.17% with RSI near overbought (80.7) and MACD surging above signal line.
• Options market shows 0.74 put/call OI imbalance, with 62,734 OI at the $250 call (this Friday’s expiry) vs. 28,583 OI at the $225 put.
• Block trade of 700 puts at $245 (expiring Feb 6) hints at hedging, while a 1,000-call buy at $265 (Feb 20) signals bullish positioning.

The numbers don’t lie: AMZN is primed for a short-term breakout. With a short-term bullish Kline pattern, overbought RSI, and a call wall at $250, the stock’s technicals and options activity align for a push higher—assuming support holds at $232.23.The Call Wall at $250 and Bearish Counterweights

Let’s start with the elephant in the room: 62,734 open interest at the $250 call (AMZN20260116C250) for this Friday’s expiry. That’s not just noise—it’s a liquidity trap. If AMZN breaks above $250, those calls could create a self-fulfilling prophecy as sellers scramble to cover. But don’t ignore the puts: 28,583 OI at $225 (AMZN20260116P225) suggests some hedgers are bracing for a pullback. The key? Volume. Calls dominate the OI landscape, with 34,093 at the $300 strike (a 21% OTM level) showing long-term bullish conviction.

Then there’s the block trade: 700 puts bought at $245 (AMZN20260206P245). That’s a hedge against a near-term dip, but the bigger story is the 1,000-call purchase at $265 (AMZN20260220C265). Someone’s betting AMZN will surge past $265 by late February. Combine that with the 3.54 MACD and you’ve got a recipe for upward momentum—if the stock can hold its 30-day support at $232.23.

News Flow: AWS Growth and Earnings Optimism Fuel the Fire

Amazon’s Q4 2025 earnings preview (expected $1.97/share) and AWS’s 20% YoY growth in Q3 are more than numbers—they’re tailwinds. Analysts love this stock: 49 of 57 rate it a “Strong Buy,” with a $293.96 average target. The recent premarket dip (~1%) amid geopolitical jitters? A buying opportunity for bulls. AWS’s plan to double compute capacity by 2027 addresses current bottlenecks, and agentic AI adoption through Amazon Bedrock could turbocharge cloud revenue. The market isn’t pricing in all this yet—AMZN’s 10-year low operating cash flow multiple suggests room to run.

Actionable Trade Ideas: Calls, Puts, and Precision Entries

For options traders, the AMZN20260116C250 call is a no-brainer. With 62,734 OI and AMZN trading just $2.21 below the strike, a break above $250 could trigger a cascade of covering. If you want a longer play, the AMZN20260123C255 (8,531 OI) offers a slightly higher target with time to ride the trend. For downside protection, consider a put spread: buy the AMZN20260116P225 (28,583 OI) and sell the AMZN20260116P220 (23,339 OI) to cap costs. The block-traded AMZN20260206P245 could also work if you’re hedging a long position.

Stock traders should eye $246.24 (intraday low) as a critical support level. A rebound here could push AMZN toward $250, with a potential target at $255 if the 30-day resistance ($232.76) holds. For a more aggressive play, enter near $247.50 (where 17,809 OI exists) with a stop just below $246.24. The 200-day MA at $218.10 is a long-term floor—don’t let the stock fall through $222.79 (200D resistance) without reevaluating.

Volatility on the Horizon: What to Watch Next

This week’s options expiry (Jan 16) will test AMZN’s resolve. A close above $250 could ignite a rally toward $265, while a drop below $246.24 might trigger a test of the $232 support. The block trades hint at volatility—both in the short term (Feb 6 puts) and mid-term (Feb 20 calls). Keep an eye on AWS’s capacity updates and Q4 earnings (due mid-January). If the stock holds its structure, 2026 could be the year AMZN reclaims its $300+ perch.