AMZN Options Signal Bullish Momentum: Calls at $235–$240 Dominate as AI Investments and Grocery Expansion Fuel Upside Potential

• AMZN trades at $231.84, down 0.1% from its 52-week high of $232.35, but technicals still trend bullish.
• Call open interest spikes at $235–$240 strikes, with 24,669 contracts at $235 (this Friday’s expiry) and 7,044 at $240 (next Friday’s expiry).
• Put/call ratio for open interest: 0.74, favoring calls, while block trades show a 500-lot buy of the AMZN20260116C250 call at $960/share.

Here’s the core insight: AMZN’s options market is pricing in a strong near-term bias toward $235–$240, supported by AI-driven earnings growth and grocery expansion. The stock’s 59.5 RSI and bullish Kline pattern suggest it’s primed to test upper Bollinger Bands at $236.72—upside potential is clear, but watch for a breakdown below $229.02.Bullish Sentiment Locked in Calls, Whale Activity at $250 Strike

The options chain tells a story of cautious optimism. For this Friday’s expiry (2026-01-02), 24,669 open interest at the $235 call and 20,740 at $240 show heavy positioning for a 2–4% rally. Next Friday’s expiry (2026-01-09) sees similar concentration, though scaled down. This suggests traders are hedging for a post-holiday bounce or a reaction to Amazon’s AI infrastructure updates.

But the real signal comes from block trades. A 500-lot buy of the AMZN20260116C250 call at $960/share (totaling $480,000) indicates institutional confidence in a mid-January move above $250. That’s a 8.3% target from current levels. Meanwhile, puts at $230 and $220 (OI: 8,562 and 7,229) offer a safety net if the stock stumbles—but the ratio still favors calls.

News Flow: AI and Grocery Expansion Fuel Long-Term Optimism

Amazon’s recent headlines align with this bullish setup. The $35 billion India investment and $76 million in SubSameDay Fulfillment Centers for grocery delivery signal aggressive growth bets. These moves reinforce the narrative that AMZN’s AI-driven infrastructure (Graviton5 CPU, AWS expansion) will sustain long-term margins despite heavy spending. However, the halt of drone delivery in Italy and legal uncertainty around gig worker classification add near-term noise. For now, the market seems to discount these risks, focusing on the $800 billion U.S. grocery market opportunity.

Actionable Trade Ideas: Calls at $235–$240, Stock Buy at 229.02–231.84

• Options Play: Buy the AMZN20260102C235 (strike price $235, expiry Jan 2) if AMZN breaks above its intraday high of $232.35. The 24,669 OI at this strike suggests strong liquidity. Alternatively, a bull call spread using the $235 and $240 strikes could cap risk while targeting a 4% move.
• Stock Play: Consider entry near $231.84 (current price) with a stop-loss at $229.02 (middle Bollinger Band). A breakout above $232.35 could target $235–$237. If the stock dips to $229.02 and holds, it becomes a high-probability buy—the 30D support/resistance range (222.405–222.756) is far enough to allow for a rebound.

Volatility on the Horizon: Eyes on January 16

The block trade on the AMZN20260116C250 call hints at a potential catalyst in mid-January. This could tie to AWS’s Graviton5 adoption or earnings updates. Traders should monitor the 200D moving average at $216.51 as a critical floor—a close below $221.32 (lower Bollinger Band) would trigger a reevaluation. For now, the technicals and options flow point to a stock that’s “buying the rumor” of growth, not the news. Stay nimble, but the bias is clearly to the upside.