AMZN Options Signal Bullish Bias: Focus on $235–$240 Calls as AI-Driven Momentum Builds

• AMZN trades at $232.71, up 0.14% with volume surging to 8.5M shares—well above its 30D average.
• Options market shows 0.72 put/call open interest ratio, with heavy call OI at $235 and $240 strikes ahead of Friday’s expiry.
• Q3 earnings and AI investments (custom chips, AWS growth) justify optimism, but $2.5B FTC settlement lingers as a risk.

Here’s the takeaway: AMZN is primed for a bullish breakout. Technicals, options flow, and fundamentals all point to a short-term push toward $235–$240. But don’t ignore the shadows—regulatory risks and AI infrastructure costs could trip the rally if sentiment shifts.

Bullish Sentiment in Options: Calls at $235–$240 Dominate

The options market isn’t whispering—it’s shouting. This Friday’s call open interest peaks at $235 (35,915 contracts) and $240 (17,615), while next Friday’s data mirrors this with 16,625 and 16,490 OI respectively. That’s not random noise; it’s a crowd betting on a $235+ move.

But here’s the twist: Puts at $230 (9,050 OI) and $222.5 (7,636) hint at a support zone around $225–$230. If AMZN dips below $229.05 (30D support), those puts could ignite a short-term rebound. The block trade at AMZN20260116C250 (buy call, 500 contracts) also screams big money is eyeing a $250+ target by mid-January.

The AI Story Justifies the Bull Case

Amazon’s Q3 results were a masterclass in growth: $180B revenue, 23% operating income jump, and AWS hitting $33B quarterly run rate. The AI bets—custom Trainium3 chips, generative tools for sellers, and ambient intelligence via Alexa—aren’t just buzzwords. They’re profit drivers.

But don’t let the bullish narrative blind you. The $2.5B FTC settlement and antitrust lawsuits are live grenades. If the stock gaps down on news, those $230 puts could become a lifeline. The key is balancing the AI optimism with a hedge against regulatory volatility.

Actionable Trades: Calls for Bulls, Puts for Cautious Bets

For options traders: AMZN20251226C235 (this Friday’s $235 call) and AMZN20260102C240 (next Friday’s $240 call) are your best bets. Why? High OI means liquidity, and the price is already testing the $232.71 level—just 0.3% shy of $235. If AMZN breaks above $233.50 (Bollinger Upper Band at $236.56 is a stretch), these calls could run.

Stock traders: Look to enter near $229.05 (30D support) with a stop just below $228.91 (middle Bollinger Band). First target: $235 (RSI at 55.5 suggests room to rise). Second target: $240 (where call OI is thickest).

Volatility on the Horizon: Positioning for AMZN’s AI-Driven Ascent

Amazon isn’t just a stock—it’s a battleground for the future of AI and cloud computing. The options data and earnings story align: bulls are stacking up at $235–$240, and the fundamentals justify it. But don’t go all-in. The $230 puts and regulatory risks mean this isn’t a straight-line trade.

Bottom line: Position for a rally, but keep a seatbelt handy. If AMZN holds above $229.05, the $235–$240 range is your profit zone. If it cracks below $225, those puts might save your skin. Either way, the AI train isn’t slowing down anytime soon.