Amazon (AMZN) Options Signal Bullish Bias at $250 Strike—Here’s How to Play the Breakout

• AMZN trades at $237.50, down 0.29% with volume surging to 18.5 million shares.
• Options open interest shows 268,000 calls vs. 197,000 puts (ratio: 0.73), with heavy call interest at $250 and $240 strikes.
• Block trades in AMZN20260116C235 and AMZN20260116C240 suggest institutional positioning ahead of Friday’s expiry.

Here’s the takeaway: AMZN’s options market is leaning bullish, with heavy call open interest at key strikes and block trades hinting at a potential breakout above $240. While short-term technicals show weakness, the long-term trend and institutional bets suggest a fight for $250 could be brewing. Let’s break it down.

Bullish Calls at $250 and Institutional Moves Signal Price Target

The options chain tells a clear story: traders are betting on a rebound. For this Friday’s expiry, the AMZN20260116C250 call has 54,036 open contracts—the second-highest on the board—while the AMZN20260116C240 call (OI: 57,996) shows even stronger demand. This isn’t just retail noise: block trades in the AMZN20260116C235 and AMZN20260116C240 options (totaling over 18,000 contracts) suggest big players are hedging or scalping a move above $240.

But don’t ignore the puts. The AMZN20260116P230 put (OI: 27,346) acts as a floor for now. If AMZN dips below $232.50 (30-day MA), the $220–$225 support zone could see a test. The key takeaway? Calls dominate the short-term outlook, but downside risks linger if the stock can’t hold above $230.

News Flow: Legal Headwinds vs. Institutional Confidence

Amazon’s legal battle with Saks Global Enterprises—a $475 million investment deemed "presumptively worthless"—adds short-term noise. But institutional investors are undeterred. American National Bank & Trust reduced its stake, yet ARK and Buckhead Capital increased holdings. Goldman Sachs’ $300 price target and AWS’s European Sovereign Cloud expansion signal long-term optimism. The Relative Strength Rating ticking up to 71 also hints at resilience in e-commerce and cloud growth.

The conflict here is clear: short-term legal drama vs. long-term institutional faith. Retail traders might sell the news, but big money is buying the dip. If AMZN can stabilize above $236.41 (intraday low), the $240–$250 range becomes a battleground.

Actionable Trade Ideas: Calls for Breakouts, Puts for Protection

For options:

• Bullish Play: Buy AMZN20260116C240 (OI: 57,996) if AMZN breaks above $239.57 (intraday high). Target $250, where heavy call OI exists.
• Conservative Spread: A bull call spread with AMZN20260116C240 (buy) and AMZN20260116C250 (sell) caps risk while leveraging the $240–$250 price target.

For stock:

• Entry near $232.50 (30-day MA) if AMZN holds above $221.06 (200-day MA).
• Target zone: $245–$250 if the $240 level breaks.
• Stop-loss below $221.06 to avoid a retest of the $219.94 lower Bollinger Band.

Volatility on the Horizon: Balancing Risk and Reward

The next 48 hours will test AMZN’s resolve. A close above $240 could trigger a rally toward $250, fueled by call open interest and institutional block trades. But a drop below $230 would reignite bearish sentiment, especially with the Saks saga unresolved. The AMZN20260123C250 call (OI: 30,924) for next Friday offers a longer runway if the stock consolidates.

Bottom line: This is a high-conviction setup for bulls, but don’t ignore the puts. The $230–$240 range is a tight corridor—trade with a plan, and let the data guide your exit. After all, in a stock like AMZN, patience often pays off when the fundamentals and options flow align.