AMZN Options Signal $235 Call Dominance: Here’s How to Position for a Potential $300 Run

• AMZN trades at $232.14, consolidating near 30D support/resistance (222.25–222.89) and 200D levels (221.06–222.79).
• Call open interest spikes at $235 and $237.50 strikes (this Friday’s expiration), while the put/call ratio for open interest sits at 0.72, favoring bullish bets.
• Analysts from BMO, Cowen, and JPMorgan have $300+ price targets, citing AI growth and AWS leverage despite near-term recalls and layoffs.

Here’s the core insight: Options data and technicals align on a short-term bullish bias, with heavy call positioning at $235–$240 strikes and analysts betting on a $300+ breakout. The stock isn’t moving much today—0.0% change—but the market is pricing in a sharp move higher. Let’s break down why this matters for your strategy.

Bullish Call Overload at $235 and $237.50: What’s the Play?

The options chain tells a clear story: traders are piling into calls at $235 (32,408 OI) and $237.50 (24,220 OI) for this Friday’s expiration. That’s not random. It suggests a consensus that AMZN will test—and likely break—its intraday high of $232.42 before the close. The put/call ratio of 0.72 (calls dominate) reinforces this, showing a structural bias toward upside.

But here’s the catch: the block trade data adds nuance. A 500-lot buy of the AMZN20260116C250 call (expiring Jan 16) for $480,000 signals big money is hedging or speculating on a longer-term rally. Meanwhile, the AMZN20251121P240 put block (830 contracts) hints at lingering bearish caution. The takeaway? Short-term bulls are aggressive, but long-term players are hedging against volatility.

News Flow: AI Hype vs. Execution Risks

Amazon’s AI reorganization and Alexa integrations are fueling the $300+ price targets. Analysts love the AWS growth story and AI monetization potential. But the Zoox recall and AI-driven layoffs complicate the narrative. Investor sentiment is split: the stock’s consolidation phase (RSI at 49.63, MACD neutral) suggests a wait-and-see attitude, but the options data shows conviction in a breakout. The key question is whether the AI optimism outweighs near-term execution risks. Given the call-heavy positioning, the market seems to think it will.

Actionable Trades: Calls for the Breakout, Puts for the Safety Net

For options traders, the AMZN20251226C235 (this Friday’s $235 call) is a high-conviction play. If AMZN closes above $232.42, this strike could see explosive gains. For a longer-term angle, the AMZN20260102C240 (next Friday’s $240 call) offers leverage if the stock breaks out of its consolidation phase. Stock traders should consider entry near $232.14 (current price) with a target at the upper Bollinger Band ($236.26) and a stop-loss at the 30D support ($228.77). A bearish counterplay? The AMZN20251226P230 put (OI: 9,829) offers downside protection if the Zoox recall or immigration concerns spike.

Volatility on the Horizon: Balancing Bullish Bets and Risk

The next 72 hours will test AMZN’s resolve. A close above $232.42 could trigger a rally toward $236.26, validating the call-heavy positioning. But a drop below $228.77 would force a reevaluation of the bullish case. The block trades and analyst targets suggest the AI story isn’t dead—yet. For now, the data favors a cautious bullish stance: play the $235 call breakout, but keep a safety net in puts. The $300 dream is still alive, but it won’t happen without a fight.