AMZN Options Signal Bullish Bias as $235 Call OI Surpasses Puts—Here’s How to Position for a Potential Breakout

• AMZN trades at $228.11, up 0.54% from yesterday’s close, with volume surging to 14 million shares.
• Options market shows a 0.70 put/call OI ratio, favoring calls at key strikes like $235 and $240.
• Block trades hint at institutional activity, including a $2.2M bearish call at $300 and a $480K bullish call at $250.

Here’s the takeaway: AMZN’s options activity and technicals point to upside potential, but short-term volatility remains a wildcard. Let’s break it down.

Bullish OI Clusters and Block Trade Signals

The options chain tells a story of cautious optimism. For this Friday’s expirations, calls at $235 ($23,667 OI) and $240 ($22,771 OI) dominate, while puts at $225 ($15,980 OI) and $220 ($8,970 OI) show bearish positioning. The put/call ratio of 0.70 (calls > puts) suggests traders are leaning toward a rally, especially with the 30D moving average ($234.30) acting as a near-term resistance.

But don’t ignore the block trades. A $2.2M bearish call at $300 (AMZN20251121C300) and a $480K bullish call at $250 (AMZN20260116C250) signal mixed institutional bets. The former could indicate hedging against a sharp rally, while the latter reflects long-term confidence. For now, the $235 strike is critical—if AMZN breaks above $229.67 (30D support), call buyers might push it toward $240.

News Flow: AI Momentum and Earnings Fuel Optimism

Amazon’s recent $180B Q3 revenue beat and the Trainium 3 AI chip launch are fueling bullish sentiment. Analysts like KeyBanc ($303 target) and UBS ($300 target) are cheering AWS’s AI growth, while institutional investors added 25M shares in Q3. But insider selling by executives like Herrington and Garman ($5.8M combined) adds a layer of caution. The stock’s $2.6T market cap and 32x P/E suggest investors are pricing in aggressive AI-driven growth—just don’t expect a straight line up.

Actionable Trade Ideas: Calls for Breakouts, Puts for HedgingFor options traders:

• Bullish play: Buy AMZN20251219C235 (next Friday’s $235 call) if AMZN closes above $229.67 today. The strike is just 0.8% above current price, and the 30D MA could act as a floor.
• Bearish hedge: Buy AMZN20251219P220 (next Friday’s $220 put) if AMZN dips below $225.11 (intraday low). The 200D support at $221.06 could limit downside.

For stock traders:

• Long entry: Target $228.50 (just below intraday high) with a stop at $222.79 (200D support). First target is $235, then $240.
• Short-term swing trade: Buy on a pullback to $225.11 (intraday low) if RSI (43) holds above 40.

Volatility on the Horizon: Balancing Bullish and Bearish Forces

Amazon’s options and fundamentals are aligned for a bullish bias, but the RSI at 43 and MACD (-0.58) below signal line hint at near-term consolidation. The key is watching the $229.67–230.67 resistance zone—break above it, and the $240 call OI could ignite. Below $222.79, however, puts like AMZN20251219P220 gain value. Either way, the next 48 hours will test whether the $228.11 level holds as a base for a larger move.

Bottom line: AMZN is in a tight range between AI optimism and short-term technicals. Position yourself with calls at $235 or a long stock entry near $228.50, but keep a close eye on the 200D MA. The options market isn’t screaming “buy the dip”—it’s whispering “wait for a breakout.”