Amazon (AMZN) Options Signal Bullish Bias at $250–$260: Here’s How to Position for a Breakout

• AMZN trades at $238.15, down 0.01% but above its 30D moving average ($232.50).
• Options data shows heavy call open interest at $250 and $260, with a put/call ratio of 0.73 (calls dominate).
• Block trades reveal large put sales at $250 and call buys at $235, hinting at strategic positioning ahead of volatility.

Here’s the core insight: AMZN’s options market is leaning bullish, with heavy call buying at key strikes and technicals suggesting a potential breakout above $245. But legal risks from the Saks bankruptcy case could create short-term turbulence. Let’s break it down.

Bullish Sentiment at $250–$260, But Puts Signal Caution

The options chain tells a story of divided priorities. For this Friday’s expirations, the top OTM calls are clustered at $240 (OI: 57,996), $250 (54,036), and $260 (36,748). These strikes act like a "bullish pressure valve"—if AMZN cracks $245, the $250 calls could see explosive demand. Meanwhile, the top puts at $190 and $230 (OI: 27,620 and 27,346) suggest some hedging against a drop below $220.

The block trades add intrigue. A $750-volume put sale at $250 (expiring June 2026) and a $1,750-volume call buy at $235 (expiring today) signal big players are hedging or scaling up ahead of the Saks ruling. This isn’t just noise—it’s a sign of positioning for a directional move, either up or down.

News Flow: Legal Risks vs. AI Optimism

Amazon’s legal battle with Saks Global is a wildcard. The judge’s rejection of Amazon’s bid to block Saks’ $475M financing plan means AMZN’s investment could face write-offs or litigation. That’s a near-term headwind. But the good news? Analysts at Evercore ISI raised AMZN’s price target to $335, citing its AI-powered shopping assistant, Rufus, as a GMV growth driver.

The Relative Strength Rating bump to 71 (still below 80) shows AMZN is outperforming peers but not dominating. This creates a mixed narrative: bulls see AI and AWS growth, while bears watch for legal fallout. The key is whether the market prioritizes the AI optimism or the Saks risk in the coming weeks.

Actionable Trades: Calls at $250, Stock Entry at $232.50

For options traders: Buy the AMZN20260123C250 call (next Friday’s $250 strike). Why? The $250 level is a psychological hurdle—break above it, and the $260 calls could surge. If AMZN hits $245 by Friday, this option could gain 15–20% in value.

For stock traders: Enter near $232.50 (30D MA) if AMZN holds above its 200D MA ($218.99). Set a target at $245 (Bollinger Upper Band) and a stop-loss at $221 (200D support).

Bearish players could consider a put spread at $230 and $220 (AMZN20260123P230 and AMZN20260123P220) if AMZN dips below $232.50. The puts at $230 have high OI, so a breakdown could trigger a cascade of stop-loss orders.

Volatility on the Horizon: Balancing Bullish Momentum and Legal Risks

AMZN’s path forward hinges on two forces: AI-driven optimism and Saks-related uncertainty. The options market is pricing in a bullish bias, but the legal case could create a short-term selloff if Amazon’s appeal fails.

Here’s the takeaway: Position for a breakout above $245 with the $250 calls, but keep a close eye on the Saks case. If AMZN’s legal woes fade, the AI narrative could push shares toward $260. But if the Saks saga escalates, the $220–$230 range will test resolve. Either way, the options market is giving us a roadmap—now it’s time to follow it.