Amazon (AMZN) Options Signal $235 Call Contention as $220 Puts Hedge AI Investment Volatility – Here’s How to Position for Dec 19 Expiry

• Options data shows a 0.70 call/put open interest ratio, favoring bullish bets at strikes like $260 and $300.
• Block trades highlight a $480K buy of AMZN20260116C250 calls, signaling long-term conviction.
• RSI at 37.43 and oversold conditions hint at a potential rebound near $222.43 support.

The options market is sending a mixed but actionable signal for Amazon today. While deep-out-of-the-money (OTM) calls dominate at $260 and $300, the largest put open interest sits at $220—just below current price. This tension reflects a key question: Will Amazon’s AI-driven optimism push shares higher, or will profit-taking and macro concerns cap gains? Let’s break it down.

The Call/Put Imbalance and Whale Moves: What AMZN’s Options Reveal

The options chain tells a story of cautious bullishness. For Friday’s expiry (Dec 19), the top OTM call is AMZN20251219C260 with 59,959 open contracts—nearly double the nearest rival at $270. This suggests a contingent of traders is pricing in a sharp rally, possibly tied to the rumored $10B OpenAI investment. But don’t ignore the puts: AMZN20251219P220 has 23,858 open contracts, anchoring downside risk near the 200D moving average ($215.33).

Block trades add intrigue. A $480K purchase of AMZN20260116C250 calls (expiring Jan 16, 2026) shows long-term bullishness, while a $1.35M put block (AMZN20251121P240) hints at hedging activity. The key takeaway? Bulls are stacking up for a breakout, but bears aren’t entirely sidelined.

AI Alliances and Workforce Shifts: How News Shapes AMZN’s Price Action

Amazon’s rumored OpenAI investment is the elephant in the room. A $10B deal for custom AI chips could supercharge AWS margins and validate its AI strategy—but analysts are already warning of an “AI bubble.” This duality plays out in the options market: high-flying calls at $300 reflect AI euphoria, while puts at $220 price in a reality check.

Meanwhile, workforce cuts in Luxembourg and partnerships like the Slope financing deal show Amazon is balancing cost discipline with innovation. Investors are split: institutional buyers (like Rowlandmiller & PARTNERS.ADV) are adding shares, but insider selling persists. This tug-of-war between growth bets and operational caution creates a volatile backdrop.

Actionable Trades: Calls for Breakouts, Puts for Protection

For options traders, the most compelling setup is AMZN20251219C235 (Dec 19 expiry, $235 strike). With 47,282 open contracts and a strike just above today’s intraday high ($225.19), this call could ignite if AMZN closes above $227.44 (middle Bollinger Band). A tighter play: AMZN20251219P220 (23,858 OI) to hedge against a pullback to $217.83 (lower Bollinger Band).

Stock traders should watch $222.43 (30D support) as a critical level. If AMZN holds here, a rebound toward $227.44 becomes likely. A break below $221.06 (200D support) would validate the bear case, targeting $215.33. For longer-term positioning, the AMZN20260116C250 call (bought in a $480K block) offers leverage to 2026’s AI-driven growth.

Volatility on the Horizon: Positioning for AMZN’s AI-Driven Crossroads

Amazon sits at a crossroads. The options market is pricing in both a AI-fueled rally and a profit-taking correction. With RSI near oversold levels and a “Moderate Buy” analyst rating, the near-term bias tilts bullish—but not without risks. Traders should balance aggression (calls at $235) with caution (puts at $220). And for those with a longer view, the Jan 16 expiry offers a chance to lock in AI optimism without near-term noise.

One thing’s clear: Amazon’s next move will be defined by its AI bets. The question is whether the market sees this as a moonshot or a bubble. For now, the options data leans toward the former—but the puts are there, just in case.