Amazon (AMZN) Options Signal $235–$240 Bullish Bias: Here’s How to Play the AI-Driven Rebound

• Current Price Action: AMZN trades at $231.31, down 0.33% from its 52-week high of $232.35. Volume is elevated at 8.56M shares, hinting at short-term volatility.
• Options Imbalance: Call open interest dominates at $235 and $240 strikes (OI: 24,669 and 20,740), while puts cluster at $230 and $220 (OI: 8,562 and 7,229). The put/call ratio for open interest is 0.738, a clear bullish skew.
• Key News Catalyst: Amazon’s $125B AI/AWS investment and automation-driven $7.5B annual savings by 2026 are fueling analyst optimism (44 "Buy" ratings, $296.12 average target).

The Core Insight: AMZN’s options market is pricing in a near-term breakout above $235, supported by AI-driven growth narratives and technical indicators. But watch for a potential pullback to $222.40 (30D support) if the $230 level breaks.Bullish Pressure at $235–$240: What the Options Say

The options chain tells a story of institutional conviction. For this Friday’s expiration (Jan 2, 2026), the AMZN20260102C235 call has the highest open interest (24,669 contracts), followed by AMZN20260102C240 (20,740). This suggests a focus on a $235–$240 price target. Meanwhile, the AMZN20260116C250 call (500 contracts traded in a block trade) hints at a longer-term bet on AI-driven upside.

But don’t ignore the puts. The AMZN20260102P230 put (8,562 OI) acts as a soft floor. If AMZN dips below $230, the $220–$225 put cluster could trigger a deeper correction. The block trade AMZN20260116P230 (385 contracts) adds intrigue—could this be a hedge against a short-term pullback?

News and Market Sentiment: Fuel for the Fire

Amazon’s AI and AWS momentum is real. The $200B AWS backlog and Trainium3 processor rollout are concrete catalysts. But the drone delivery pause in Italy and automation job cuts (50,000 roles) could create short-term noise. Investors are betting the positives outweigh the negatives: 44 "Buy" ratings and a 28% average upside suggest confidence in the $3T valuation thesis.

Actionable Trade Ideas for Today

1. Options Play: Buy the AMZN20260102C235 call (strike price $235, Jan 2 expiry). Rationale: High OI and block trade activity suggest a likely test of this level. If AMZN closes above $235 by Friday, the call could see a 15–20% move. For a longer-term bet, the AMZN20260116C240 call (Jan 16 expiry) offers leverage if the $240 target is met.

1. Stock Play: Consider entry near $230.20 (intraday low) if support holds. Target $235 as a first objective, with a stop-loss at $222.40 (30D support). For a bearish hedge, sell the AMZN20260102P230 put (OI: 8,562) to collect premium while capping downside risk.

1. Advanced Strategy: A call spread using AMZN20260102C235 and AMZN20260102C240 could limit risk while capitalizing on a $235–$240 breakout. The spread costs ~$1.20/share but offers 8%+ returns if AMZN closes above $240 by Friday.

Volatility on the Horizon

Amazon’s options market is pricing in a 12–15% move by Jan 16. With AWS growth projections and AI hype in play, the stock could see a sharp rebound. But keep an eye on the Bollinger Bands—the upper band at $236.72 is a critical resistance. A close above this could trigger a retest of $240. Conversely, a break below $221.32 (lower band) would validate bearish sentiment.

Final Takeaway

AMZN’s options and fundamentals align for a bullish setup. The $235–$240 range is a focal point, backed by AI-driven growth and institutional bets. But don’t ignore the risks: a dip below $230 could reignite volatility. For traders, the AMZN20260102C235 call and a $230.20 stock entry offer the clearest path to capitalize on the AI-driven rebound. Stay nimble—this is a stock with momentum, and the next few days could define its 2026 trajectory.