AMZN Options Signal Bullish Bias: Calls Dominate at $235–$240 as Block Trades Hint at Volatility Play

• AMZN opens 2026 with a -1.77% drop, trading at $226.74, but long-term bullish trends persist.
• Options market shows call open interest surging past puts 2.4:1, with heavy concentration at $235 and $240 strikes.
• Block trades reveal a $500K bet on the $250 call and a $1.3M put at $240—both expiring Jan 16.

Here’s what the data says: The stock’s short-term bearish reversal pattern clashes with long-term bullish momentum. But options traders are clearly leaning bullish, and the block trades suggest big players are hedging or positioning for a volatile week.The Options Imbalance: A Bullish Battle at Key Strikes

Let’s start with the numbers. Call open interest for this Friday’s expiration is dominated by the $235 strike (OI: 24,571) and $240 (18,229), while puts trail with the $215 strike at 7,393. That’s a call/put ratio of nearly 3:1 for these top contracts. Why does this matter? High call OI at $235–$240 suggests institutional players are either hedging existing positions or speculating on a rebound. The $250 call (OI: 13,839) is a longer shot but shows appetite for a sharp rally.

But don’t ignore the puts. The $215 strike has 7,393 open puts, and the $225 strike (OI: 6,066) could act as a magnet if the stock breaks below its 200D support at $221.61. The block trade at AMZN20260116P230—$1.3M worth of puts—hints someone’s bracing for a dip before the week ends.

News vs. Options: AI Hype vs. Valuation Reality Check

Amazon’s recent headlines are a mixed bag. BMO’s upgrade to $304 is bullish, especially with AWS AI momentum and a $35B India investment. But Rodzianko’s downgrade to Hold—citing a “too high” forward P/E—adds caution. The options market isn’t buying the bear case yet. The put/call ratio of 0.74 (calls dominate) suggests retail and institutional players still see more upside than downside. However, the $225 put block trade (OI: 4,913 for next Friday) could signal a quiet shift in sentiment if the stock tests support.

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

If you’re bullish but cautious, here’s how to play it:

• For a short-term rally: Buy the AMZN20260102C235 (this Friday’s $235 call). The stock needs to break above $232.35 (30D support) to trigger this. Target: $235–$240. Exit if it fails to hold $230.
• For next Friday’s longer play: The AMZN20260109C240 offers leverage if the bounce continues. Entry near $228.77 (middle Bollinger Band) with a target at $235.
• For downside protection: A put spread at AMZN20260102P225 and AMZN20260102P220 could cap losses if the stock drops below $221.61. The block trade at $230 puts adds intrigue.

Volatility on the Horizon

This week’s options expirations (Jan 2 and 9) and the block trades on Jan 16 contracts mean volatility isn’t going anywhere. The stock’s RSI at 48 and MACD crossing above the signal line hint at a potential rebound, but the 200D moving average at $216.86 remains a critical floor. If AMZN holds $221.61, the bulls could reclaim $235 by Friday. If not, the puts at $225 and $220 will get attention.

Final Take: The options market is a divided house—bullish on the rally, wary of the downside. For traders, this means balancing aggressive calls with defensive puts. The block trades suggest big players are hedging for a volatile week, so keep an eye on the $230–$240 range. If the stock breaks out, the $250 call could be a fireworks show. But if it cracks below $221.61… well, the puts are waiting.