Amazon (AMZN) Options Signal Bullish Momentum: Calls at $240 Dominate as Puts at $215 Hint at Caution – Here’s How to Play It

• Current Price Action: AMZN trades at $232.08, down 0.19% from its 52-week high of $258.60.
• Options Imbalance: Call open interest (2.4M) outpaces puts (1.8M), with heavy call volume at $240 and $237.5 strikes.
• Block Trade Alert: A $480K buy of AMZN20260116C250 (Jan 16 call) and $524K put purchase at AMZN20260116P230 signal institutional positioning.

The Core Insight: AMZN’s options market is leaning sharply bullish, with calls at $240–$250 dominating open interest. But don’t ignore the $215–$230 put cluster—it’s a quiet red flag for downside risks. Let’s break down what this means for your strategy.Bullish Calls vs. Defensive Puts: What the Options Are Saying

The call/put ratio of 0.736 (call-heavy) isn’t just a number—it’s a signal. Over 20K contracts at the $240 strike (AMZN20260102C240) and $237.5 level (AMZN20260102C2375) show big money is hedging for a mid- to late-January rally. Meanwhile, the $215 put (AMZN20260102P215) with 8K open interest suggests some players are bracing for a 8% drop.

But here’s the twist: Block trades like the AMZN20260116C250 (Jan 16 $250 call) and AMZN20260116P230 (Jan 16 $230 put) tell a mixed story. Buying the $250 call implies confidence in a 7% move higher by mid-January. Yet the $230 put purchase hints at a fear of a 5% pullback. This duality means AMZN could swing between breakout and consolidation—depending on news flow.

News That Could Shift the Odds

Amazon’s recent headlines are a mixed bag. The $35B India investment and grocery expansion are tailwinds, but the Italy drone pause and regulatory hurdles add friction. Here’s what to watch:

• Upside Catalysts: AWS’s Q3 $33B revenue and AI Factories launch position AMZN as a cloud/AI juggernaut. Analysts still see a 27% upside to $296.
• Downside Risks: Regulatory pushback (like in Italy) and AI capital costs could weigh. The $215 put cluster aligns with a worst-case scenario where AMZN dips below its 200D MA ($216.32).

Actionable Trades for TodayFor Options Traders:

• Short-Term Play: Buy AMZN20260102C240 (Jan 2 call at $240). With AMZN near $232, this strike offers 3% upside if the stock holds above $229 (middle Bollinger Band).
• Longer-Hold Bet: Go with AMZN20260109C240 (Jan 9 call). The $240 level is a key psychological threshold—break above it, and the 200D MA becomes support.

For Stock Investors:

• Entry Zone: Consider buying AMZN near $229.08 (middle Bollinger Band) if it holds. A close above $232.60 (intraday high) would validate the bullish case.
• Stop-Loss: Trail below $222.45 (30D support). If AMZN breaks that, consider a put spread using AMZN20260102P230 and AMZN20260102P215 to hedge.

Volatility on the Horizon

Amazon’s options market is pricing in a volatile January. The block trades and analyst price targets suggest a tight range between $230 and $250 for now. But if the $240 call cluster attracts more buyers, AMZN could test $250 by mid-January. Stay nimble—this stock isn’t done surprising us.

Final Take: AMZN’s options and fundamentals are in a tug-of-war. The bulls have the edge for now, but don’t ignore the puts at $215. Position yourself to ride the upside while hedging the downside—it’s the only way to play a stock this volatile.