Amazon (AMZN) at a Crossroads: Call OI at $235–$240 Signals Bullish Setup Amid Ranging Volatility

• AMZN trades at $224.05, down 0.95% with volume surging to 5.8M shares
• Options data shows heavy call open interest at $235 and $240 (expiring Friday), while puts dominate at $200–$220
• Guggenheim’s $300 price target and AWS growth offset near-term bearish technicals

Here’s the takeaway: AMZN’s price action suggests a short-term bearish drift, but the options market is pricing in a potential rebound toward $235–$240. With the stock testing its 200D MA ($215.19) and key support/resistance clusters, traders need to balance caution with opportunistic setups.

Bullish Pressure at $235–$240, Bearish Anchors at $200–$220

The options chain tells a story of conflicting forces. For this Friday’s expiration (Dec 19), call open interest peaks at $235 (OI: 50,162) and $240 (OI: 43,080), while puts dominate at $200 (OI: 25,593) and $220 (OI: 21,628). This suggests a tug-of-war: bulls are hedging or speculating on a rebound to $235–$240, while bears are positioning for a drop toward $200–$220. The put/call ratio of 0.71 (favoring calls) reinforces the bullish bias, though the short-term MACD (-0.74) and RSI (58.18) hint at exhaustion in the current downtrend.

Block trades add intrigue. A massive 830-contract put block at AMZN20251121P240 (expiring Nov 21) suggests hedging against a near-term dip, while a 500-contract call buy at AMZN20260116C250 (expiring Jan 16) signals long-term bullishness. These moves hint at institutional players preparing for volatility, whether from earnings, AI rollouts, or India expansion updates.

News Flow: Bullish Fundamentals vs. Technical Headwinds

Guggenheim’s $300 price target and Amazon’s India expansion ($35B by 2030) are major bullish catalysts. The Q3 earnings beat ($1.95/share vs. $1.57 est) and AWS’s $33B revenue also support a long-term upward trajectory. However, the stock’s 13.4% drop from its 52-week high ($259.75) and insider selling (CEO Garman sold 17,768 shares) create near-term uncertainty. The key question: Will the market prioritize Amazon’s AI/cloud dominance or focus on short-term profit-taking?

Actionable Trade Ideas: Calls at $235–$240, Puts at $220

For options traders:

• Bullish Play: Buy AMZN20251219C235 (Dec 19 exp) if AMZN breaks above $228.56 (middle Bollinger Band). Target $240, stop below $224.02 (intraday low).
• Bearish Play: Buy AMZN20251219P220 if AMZN dips below $221.06 (200D MA support). Target $200, stop above $228.93 (30D support).

For stock traders:

• Entry near $228.56 (middle Bollinger Band) if AMZN holds above $221.06. Target $235–$240, exit if it retests $221.06.
• Short-term bearish: Consider selling into strength near $229.67 (30D resistance) with a stop above $230.

Volatility on the Horizon

Amazon’s options market is pricing in a volatile December. The India expansion, AI platform launches, and Q4 earnings (Jan 2026) could force a breakout or breakdown. Traders should monitor the $228.56–$221.06 range closely: a break above $228.56 could reignite the $235–$240 call frenzy, while a drop below $221.06 might trigger the $200–$220 put bets. Position yourself to capitalize on either scenario—this is a stock at a crossroads.