Amazon (AMZN) Options Signal Aggressive Bullish Play: Focus on $260 Call Wall as AI and Grocery Momentum Builds

• AMZN trades at $230.14, down 0.7% from its 52-week high of $232.11
• Call open interest dominates next Friday’s chain, with 60,388 contracts at $260 and 52,757 at $270
• Block trades show big money buying 500 contracts of AMZN20260116C250 ($250 call) and 1,000 puts at AMZN20250919P220

Here’s the core insight: The options market is betting hard on a 2026 AI-driven rally, with a $260 price level acting as both a psychological barrier and a liquidity magnet. While technicals show short-term jitters, the broader narrative screams "buy the dip" for long-term bulls.The Call/Put Imbalance and Whale Moves Painting a Bull Case

Let’s start with the elephant in the room: next Friday’s options chain is loaded with call-heavy liquidity. The $260 strike alone has 60,388 open contracts—nearly triple the nearest put (AMZN20251219P200 at 25,238). This isn’t just retail frenzy; it’s institutional positioning. The AMZN20260116C250 block trade (500 contracts bought at $960/contract) suggests big players are hedging or scaling up for a 2026 AI infrastructure boom.

But don’t ignore the puts. The $200 strike (OI: 25,238) acts as a floor for downside protection. If AMZN breaks below its 30D support at $228.94, that put wall could stabilize the stock. The risk? The $230–235 call strikes (OI: 49,015–49,015) are thin compared to the $260+ wall. A sharp rally might overshoot without intermediate liquidity.

Why the Options Narrative Lines Up with Amazon’s Real-World Moves

Amazon’s Q3 earnings and AWS updates are fueling this trade. AWS’s 20% revenue growth and new Graviton5-powered EC2 instances position it as the AI infrastructure king. The Mairs & Power Balanced Fund’s Q3 entry into AMZN at a discount (post-April 2025 selloff) shows institutional confidence. Meanwhile, grocery expansion to 2,300+ U.S. cities is a physical retail play that could juice margins.

The catch? Amazon’s 30x forward P/E is a premium bet. If AWS growth slows or AI spending underwhelms, the stock could retest its 200D MA at $215.02. But the options data assumes the bulls are already pricing in 2026’s AI-driven upside.

Actionable Trade Ideas for Today

1. Options Play: Buy AMZN20251219C235 ($235 call, expiring Dec 19) if AMZN breaks above its intraday high of $232.11. This strike sits at the edge of the 30D support/resistance range ($228.94–$229.67) and has 49,015 open contracts to catch a rally. For a more aggressive bet, target AMZN20251219C260 ($260 call) if the stock closes above $237.50 (a 3.2% move).
2. Stock Play: Consider entries near $229.42 (intraday low) if the stock holds above its 30D MA at $234.42. A breakout above $232.11 could target $237.50 (RSI 62.25 suggests room to run). If it drops below $229.42, pivot to AMZN20251219P225 puts (OI: 15,944) for downside hedges.

Volatility on the Horizon

Amazon’s options market is a chessboard of 2026 bets. The $260 call wall and AWS/AI news create a self-fulfilling prophecy: big money is positioning for a breakout, and retail traders might follow. But don’t ignore the 200D support at $215.02—it’s a 7% buffer from current levels. This is a high-conviction trade for those comfortable with a 30x valuation gamble. If you’re in, lock in partial profits near $242.50 (Bollinger Upper Band) and keep half your position for the long game.

The bottom line? Amazon’s options activity isn’t just noise—it’s a roadmap. The question is whether you’re ready to ride the AI wave or play defense in case the bulls hit a wall.