Amazon (AMZN) Options Signal $235 Bull Call Play as AI Expansion Fuels 2026 Upside

• Options OI shows heavy call buying at $235 and $240 strikes for Friday expiration
• AWS AI capacity growth and $33B revenue quarter drive bullish sentiment
• Block trade of 500 AMZN20260116C250 calls hints at institutional bullishness

Here’s the takeaway: AMZN’s options market is painting a clear picture. With 32,408 open interest at the $235 call strike and a 0.72 put/call ratio (calls dominate), the crowd is pricing in a near-term breakout. Technicals back this up—price is perched above key moving averages and testing Bollinger Bands resistance. This isn’t just noise; it’s a setup.

Bull Call Pressure and Institutional Bets

The options chain tells two stories. First, retail and institutional players are loading up on AMZN20251226C235 and AMZN20251226C240 calls this Friday, with open interest spiking past 18,000 contracts. That’s not accidental—it’s a bet that AMZN will punch through its 232.95 intraday high and test the $236.25 Bollinger Band. The RSI at 49.63 suggests we’re not yet overbought, giving bulls room to run.

But here’s the twist: A block trade of 500 AMZN20260116C250 calls (expiring Jan 16) at $960 per contract shows big money is hedging for a longer-term rally. That’s $480,000 committed to a $250+ move by mid-January. Meanwhile, the 8,300-volume put block at the $240 strike (AMZN20251121P240) hints some players are bracing for volatility—maybe from the AI shopping agent debate.

News That Could Make or Break This Play

Amazon’s AWS unit is the real engine here. The $61B reason to buy? AWS’s Trainium AI infrastructure is now a multibillion-dollar business, and analysts like Oppenheimer just hiked their target to $305. Q3’s $33B AWS revenue isn’t just a number—it’s a tailwind. But don’t ignore the headwinds: Blocking 47 AI shopping bots could backfire if customers shift to third-party platforms. The stock’s 31.7x forward P/E isn’t cheap, but 56 “Strong Buy” ratings suggest the Street’s willing to pay for growth.

Actionable Trade Ideas

For options traders: Buy AMZN20251226C235 (this Friday’s $235 call) if price breaks above 232.95. Target a $2–$3 move before expiration. For a longer play, AMZN20260102C235 (next Friday’s same strike) offers more time if the AI news cycle drags.

Stock traders: Consider entry near $231.33 (intraday low) with a stop below 228.77 (middle Bollinger Band). First target is 236.25, then 240. If you’re bearish, the AMZN20251226P230 put has 9,829 OI to hedge a pullback.

Volatility on the Horizon

Amazon’s dance with AI is a double-edged sword. The block trades and options flow suggest a 2026 rally is being priced in, but the bot battles could create short-term whipsaw. Keep an eye on the 221.29 lower Bollinger Band as a critical support level—if it breaks, the 200D MA at 215.97 becomes a new battleground. For now, the data says: Bulls are in control, but don’t ignore the puts. This is a stock with momentum—and momentum can shift fast.