Amazon (AMZN) Options Signal $240 Call Contention Amid $220 Put Defense – Here’s How to Position for Volatility

• AMZN’s OTM call open interest peaks at $260 and $240 strikes, while puts at $220 show heavy downside hedging.
• Block trades hint at institutional bets: A $1.35M put block at $240 and a $480K call buy at $250 (Jan 2026) signal strategic positioning.
• Guggenheim’s $300 price target and Amazon’s $35B India investment clash with near-term logistics-driven volatility.

Here’s the takeaway: AMZN’s options market is locked in a tug-of-war between cautious bullishness and defensive positioning. The stock sits at $222.85, just 0.14% above its open, but the technicals and options data tell a more nuanced story. Right now, the stock shows modest upside potential if it breaks above $229.67 (30D support/resistance), but acute downside risk if it slips below $218.34 (lower Bollinger Band). Let’s break it down.

Bullish Call Clusters vs. Bearish Put Fortification

The options chain is a chessboard of expectations. This Friday’s top OTM calls—$260 (OI: 60,216), $270 (OI: 52,776), and $300 (OI: 51,398)—show heavy speculative interest, but the $240 strike (OI: 42,497) is where the action really matters. That’s not just a strike price; it’s a psychological line in the sand. Meanwhile, puts at $220 (OI: 23,549) and $215 (OI: 22,265) suggest institutional players are hedging against a drop to the 200D MA at $221.06.

But here’s the twist: A block trade of 830 puts at $240 (expiring Nov 21) and a 500-call buy at $250 (Jan 16) signal big players are prepping for a multi-month battle. The $240 put block could act as a catalyst if the stock dips, while the $250 call buy hints at long-term optimism. For retail traders, this means straddling both sides—using the $240 puts as a hedge while eyeing the $250 calls for a potential breakout.

News That Could Tip the Scales

Amazon’s recent headlines are a mixed bag. The $35B India investment and Guggenheim’s $300 target scream bullish, but the iRobot bankruptcy and logistics-focused asset sales (like the LAX warehouse) add friction. The money-back guarantee for air cargo shippers is a smart move, but it’s more of a confidence booster than a stock mover. What matters most is how the market interprets these moves. If the India investment is seen as a long-term play, it could fuel the $300 call frenzy. But if the logistics news is viewed as a cost-cutting ploy, the $220 puts might get a boost.

Actionable Trade Setups

For options traders, the most compelling plays are:

• Bullish: Buy AMZN20251219C240 (this Friday’s $240 call) if the stock breaks above $223.66 (intraday high). Target: $245 by expiration.
• Bearish: Buy AMZN20251219P220 (this Friday’s $220 put) if the stock dips below $221.90 (intraday low). Target: $215 by Friday.
• Neutral: Sell AMZN20251226C245 (next Friday’s $245 call) if the stock consolidates between $221.90 and $223.66. This plays the range-bound RSI (44.09) and MACD histogram (-0.66) suggesting equilibrium.

For stock traders, consider:

• Entry near $221.06 (200D MA) if AMZN holds above $218.34 (lower Bollinger Band). Target: $229.67 (30D resistance).
• Stop-loss at $215 if the stock breaks below $218.34, aligning with the $215 put OI cluster.

Volatility on the Horizon

The next 10 days will be critical. If AMZN’s 30D MA ($233.80) pulls the stock upward, the $240–$260 call cluster could ignite a rally. But if the 200D MA ($215.24) reasserts itself, the $220 put defense might hold. Either way, the block trades and options flow suggest a high-stakes game of chicken. Position yourself with a mix of directional bets and hedges—because in AMZN’s world, even a small move can feel like an earthquake.