Amazon (AMZN) Options Signal Bullish Momentum: Calls at $240–$250 Dominate as Analysts Target $315

• AMZN trades at $232.20, down 0.14% with volume surging to 3.1 million shares.
• Call open interest outpaces puts 2:1, with heavy concentration at $240 and $250 strikes.
• Analysts raised 2026 price targets to $315, citing AWS growth and AI-driven demand.

The options market is whispering a clear message: bulls are stacking up for a breakout. With call open interest dominating and block trades hinting at big-money positioning, AMZN shows upside potential—but risks lurk below key support. Let’s break it down.Bullish Sentiment Locked in at $240–$250, Block Trades Signal Big Bets

The options chain tells a story of conviction. This Friday’s top call open interest piles up at $235 (23,099 contracts), $240 (20,673), and $250 (12,816), while puts cluster at $215 and $230. The put/call ratio of 0.736 (calls > puts) confirms a net bullish bias.

But it’s the block trades that catch attention. A 500-lot AMZN20260116C250 call purchase (expiring Jan 16) suggests institutional players are betting on a $250+ move. Meanwhile, a 830-lot AMZN20251121P240 put trade (expiring Nov 21) hints at hedging activity—though its expiration date is weeks away.

The takeaway? Bulls are stacking up at $240–$250, but the lack of significant put activity below $220 means a sharp drop could catch short-term traders off guard.News Flow: Strategic Shifts and Analyst Hype Fuel Optimism

Amazon’s drone program halt in Italy is a minor setback, but institutional investors are doubling down. Exchange Traded Concepts LLC boosted its stake by 49% in Q3, now holding $239M in AMZN. Analysts from Morgan Stanley and Evercore ISI have raised price targets to $315 and $305, respectively, citing AWS’s AI-driven growth and a $38B cloud deal with OpenAI.

Yet, the recent AWS outage on Dec 24 raises red flags. While brief, it highlights vulnerabilities in cloud reliability—a sector where competitors like Microsoft and Google are closing in. Retailers and advertisers may balk at pricing pressures if outages recur.

The bottom line? The news flow leans bullish, but AWS’s reliability—and Amazon’s ability to scale AI infrastructure—will determine if this momentum holds.Actionable Trades: Calls at $240–$250, Cautious Puts at $215

For options traders, the AMZN20260102C240 call (expiring Jan 2) offers a high-conviction play. With 20,673 contracts in open interest, this strike aligns with the 30D moving average ($228.50) and RSI neutrality (55.1). A breakout above $240 could target $250–$260, where block trades are already positioned.

Stock traders should watch $229.08 (middle Bollinger Band) as a critical support. If AMZN holds here, a long entry near $230 with a stop below $227.50 could target $245–$250. For downside protection, the AMZN20260102P215 put (8,244 OI) offers a floor if sentiment shifts.

Key levels to monitor:

• Bull case: Break above $240 → target $250–$260.
• Bear case: Drop below $227.50 → risk $220–$215.

Volatility on the Horizon: Positioning for 2026’s AWS-Driven Growth

Amazon’s stock is at a crossroads. The options market and analysts agree: AWS and AI will drive the next leg higher. But with Bollinger Bands widening and RSI hovering near neutrality, patience is key.

Final call: This is a high-conviction bullish setup. If AMZN holds its 30D support and breaks the $240 call wall, the path to $250+ is clear. But keep a tight stop below $227.50—because in a stock this big, even a short-term dip can sting.Would you go long? The data says yes—but only if you’re ready to act fast when the green light turns on.