AMZN Options Signal Bullish Bias: Focus on $235 Call OI and AI-Driven Upside Potential

• AMZN trades at $231.82, down 0.3% but clinging to a long-term bullish trend.
• Options data shows call open interest (OI) dominates puts 2.45x, with heavy concentration at the $235 strike.
• Block trades hint at big money positioning: a $250 call bought and a $230 put purchased for Jan 16 expiration.

Here’s the takeaway: AMZN’s options market is painting a clear picture of bullish momentum, with technicals and news aligning for a potential breakout above $235. Let’s break down why this matters for traders today.

Bullish OI Clusters and Whale Moves: What’s Cooking at $235?

The options chain is screaming about one thing: call OI peaks at the $235 strike for this Friday’s expiration (AMZN20260102C235), with 27,118 contracts outstanding. That’s not just noise—it’s a magnet for price. Think of it like a tug-of-war: the more calls pile into $235, the stronger the pull to reach that level.

But it’s not all one-sided. Puts dominate at $230 (AMZN20260102P230) and $225 (AMZN20260102P225), suggesting some hedging below current levels. The key? If AMZN holds above its 30D support at $232.35, the bulls have a clear path to test $235. If it breaks below $228.95 (middle Bollinger Band), though, those puts could ignite a short-term selloff.

Block trades add intrigue. A 500-lot AMZN20260116C250 call was bought for $960,000, signaling a big bet on a mid-January pop above $250. Meanwhile, a 385-lot AMZN20260116P230 put was purchased, hinting at downside protection ahead of earnings. These moves suggest smart money is hedging for volatility but leaning bullish.

Why the News Flow Fuels the Bull Case

Amazon’s recent headlines are a goldmine for longs. RBC and Wells Fargo upgraded AMZN to “Buy,” citing $125B in AI/cloud investments and AWS’s 18-22% YoY growth outlook. That’s not just Wall Street fluff—AWS is Amazon’s cash cow, and its AI monetization is now firing on all cylinders.

The drone delivery pause in Italy? A minor speed bump, not a red flag. Investors are ignoring short-term logistics hiccups in favor of the bigger picture: AWS dominance and AI-driven margins. And with institutional buyers like ARK and Swedbank boosting stakes, the stock’s 12-month target of $295.50 feels less like a stretch and more like a floor.

Actionable Trades: Calls, Puts, and Precision Entries

For options traders, the AMZN20260102C235 call is a no-brainer. With 27,118 contracts in OI, this strike is a gravitational pull. If AMZN closes above $235 by Friday, the reward-to-risk ratio here is tempting. For a longer play, the AMZN20260109C240 (8,188 OI) offers a buffer with a 200D MA at $216.68 as a floor.

On the stock side, target an entry near $232.35 (30D support). A break above $235 could push toward $240 (Bollinger Upper at $236.50) and even $250. If you’re cautious, the AMZN20260102P225 put offers downside insurance at $6,034 OI.

Volatility on the Horizon: A Bullish New Year?

Putting it all together: AMZN’s options, news, and technicals are in sync. The RSI at 58.68 suggests we’re not overbought yet, and the MACD histogram (0.84) is gaining steam. With AWS growth and AI tailwinds, this stock isn’t just trading higher—it’s earning higher.

The risks? A surprise earnings miss or a broader market selloff. But for now, the data says stay bullish, target $235–$240, and let the options OI guide your entries. Happy trading—and here’s to a breakout 2026.