AMZN Options Signal Bullish Bias as $235 Call OI Surpasses Puts—Here’s How to Play the AI-Driven Rebound

• AMZN trades at $225.34, down 2.37% from its 2026 start, but call open interest at $235+ strikes dwarfs put activity.
• Block trades show big money buying $250 calls and $230 puts ahead of Jan 16 expiration, hinting at a directional bet.
• BMO just raised its price target to $304 on AI-driven AWS momentum, while GuruFocus downgraded to Hold at $255.

The stock’s technicals and options flow tell a story of a market bracing for a rebound. Here’s why the $235 level is a critical battleground.Bullish Freight Train: Call OI and Block Trades Signal Conviction

Options market participants are clearly leaning bullish. The $235 strike (OI: 24,571) and $240 strike (OI: 18,229) for this Friday’s expiration dominate the call chain, while puts trail with $215 (OI: 7,393) and $220 (OI: 6,255) as top contenders. This 3:1 call/put imbalance in open interest suggests traders expect a rebound above $230 before the week ends.

But it’s the block trades that catch the eye. A 500-lot buy of the AMZN20260116C250 call ($250 strike, Jan 16 expiry) signals big money is hedging a rally. Meanwhile, a 385-lot AMZN20260116P230 put purchase hints at downside protection ahead of key earnings or guidance updates. These moves aren’t random—they’re a playbook for a stock poised to break out.

News That Could Fuel the Fire (or Dampen It)

BMO’s $304 price target is no fluke. AWS’s AI-driven cloud commitments and the $35B India investment are real tailwinds. But Rodzianko’s downgrade to Hold at $255 adds friction. The market is pricing in a best-case scenario for AWS growth, but macro risks like interest rates still linger. Retail investors need to ask: Is this a tech rally story, or a sector rotation play?

Actionable Trades: Calls for the Bold, Puts for the Pragmatic

For options traders, the AMZN20260109C235 call (expiring Jan 9) is a high-conviction play if AMZN breaks above its Bollinger Upper Band at $235.93. Entry near $228.77 (middle band) with a target at $235 offers a 2.5% upside in three days. For a safer bet, the AMZN20260116P225 put (Jan 16 expiry) could profit if the stock dips below $221.61 (lower band), though volume suggests this path is less likely.

Stock buyers should watch the 30D support at $232.35. If AMZN holds here, consider entries between $228–$230 with a stop below $224.70 (today’s low). A break above $235.46 (intraday high) would validate the bullish case.

Volatility on the Horizon: Ride the Wave or Hedge the Storm

AMZN’s options flow and technicals point to a stock at a crossroads. The call-heavy OI and block trades suggest a short-term rally is priced in, but the RSI at 48 and MACD crossover hint momentum could wane if the $235 level fails. For now, the AI narrative is strong—just don’t ignore the puts at $215. They’re there for a reason.