Amazon (AMZN) Options Signal Bullish Momentum: Key Call Strikes and Block Trades Point to $250+ Breakout Potential

• AMZN trades at $248.21, up 0.34% with volume surging to 13.48M shares.
• Options call open interest (OI) dominates, with 2.5M calls vs. 1.9M puts (ratio: 0.745).
• Block trades on $232.5 and $235 calls (expiring 1/16) hint at institutional bullishness.

The data tells a story: AMZN’s options market is pricing in a strong near-term upside bias, backed by technicals and news. Here’s how to position for it.Bullish Sentiment in Options and Block Trades

The options chain is skewed higher. For this Friday’s expiration (1/16), calls at $250 (OI: 62,734) and $260 (OI: 41,299) dominate, while puts are concentrated at $225 (OI: 28,583). This suggests traders are hedging against a dip but leaning heavily into a potential $250+ move.

The block trades add intrigue. A 450-lot of AMZN20260116C232.5 and AMZN20260116C235 (both expiring Friday) were traded at ~$2.50–$3.00 per contract. At those prices, the buyer is betting AMZN will clear $235 by 1/16—a low bar given today’s intraday high of $248.48. This looks like a hedge or a liquidity play, not panic.

News and Technicals Align for a Breakout

Analysts are upgrading AMZN’s AI and cloud bets. Jefferies and Citizens both raised price targets to $300, citing AWS’s 20%+ growth and AI-driven margins. The stock’s RSI at 80.7 (overbought) and MACD histogram at 2.06 confirm momentum, while Bollinger Bands show AMZN is trading near the upper band—often a precursor to a breakout or pullback.

But here’s the catch: The 200D moving average at $218.10 is a deep support level. If AMZN dips below $246.24 (today’s low), that could trigger a test of $232.24 (30D support). However, the options data shows minimal put OI below $225, meaning a drop to $220 would likely see aggressive buying.

Actionable Trade Ideas for AMZNFor Options Traders:

• Buy AMZN20260116C250 (strike: $250, expiring 1/16). With OI at 62,734, this is the most liquid OTM call. If AMZN holds above $246.24, the $250 strike could act as a psychological catalyst.
• Sell AMZN20260123P225 (strike: $225, expiring 1/23) as a credit spread. The low put OI at $225 means limited downside risk if AMZN dips.

For Stock Traders:

• Enter near $248.21 if AMZN holds above $246.24. Target $250–$255 (resistance from 30D support-turned-resistance at $232.76).
• Stop-loss below $246.24 to protect against a breakdown.

Volatility on the Horizon

The next 10 days will test AMZN’s resolve. A close above $250 would validate the bullish case, potentially pushing toward $260 (where 34,093 calls are waiting). Conversely, a breakdown below $246.24 could trigger a test of $232.24. Either way, the options market is pricing in a directional move—just not a bearish one.

Final Take: AMZN’s mix of AI-driven fundamentals, bullish options flow, and technical momentum points to a high-probability upside trade. The risks? Overbought RSI and a potential pullback. But with institutional block trades and analyst upgrades in play, the odds of a $250+ move before 1/16 are looking strong.