Amazon (AMZN) Options Signal Bullish Bias: Focus on $240 Call OI and AI-Driven Upside Potential

• AMZN trades at $229.79, up 0.3% with volume surging to 16.8M shares.
• Call open interest dominates at $240 (27,554 contracts) and $235 (27,401), while puts peak at $225 (11,026).
• Put/call ratio for open interest: 0.685, signaling strong near-term bullish sentiment.

The options market and technicals are painting a clear picture: AMZN is primed for a breakout. With AI-driven growth stories fueling institutional buying and call options clustering near $240, the stage is set for a short-to-midterm rally. Let’s break down why this matters for traders today.

Bullish Imbalance in OTM Options and Whale Moves

The call/put open interest ratio tells a story of conviction. For this Friday’s expiration, the $240 call (AMZN20251205C240) leads with 27,554 contracts—nearly double the nearest put. This suggests institutional players are pricing in a 4.9% move above current levels. Meanwhile, the $225 put (AMZN20251205P225) anchors downside risk, but its 11,026 contracts pale compared to call demand.

Block trades add intrigue. A massive AMZN20260116C250 call block (500 contracts, $480K turnover) hints at long-term positioning for a 10.5% rally by January. Conversely, the AMZN20251121P240 put block (830 contracts, $1.35M turnover) could signal hedging by short-term bulls. The takeaway? Bulls are stacking up, but bears aren’t entirely absent—watch the $225 level for early signs of capitulation.

AI News and Institutional Buying Fuel the Narrative

Amazon’s AWS re:Invent conference dropped a firehose of AI upgrades: Graviton5 chips, AI Factories, and Nova 2 models. Goldman Sachs now forecasts $10.7B in 2025 AI revenue, a 20%+ CAGR. This isn’t just hype—Freemont Management boosted its AMZN stake by 30.7% to $10.38M, while ARK and Border to Coast added to positions.

But here’s the catch: insider sales of 82,234 shares ($19M) in the last 90 days linger in the background. While management retains 9.7% ownership, the recent $209M Italian settlement and fee cuts in Europe could weigh on retail sentiment. Still, the institutional buying and analyst price targets ($296.11 average) suggest the AI narrative is here to stay.

Actionable Trade Ideas for AMZNOptions Play: For a low-risk bet, target the AMZN20251205C240 call (this Friday’s $240 strike). If AMZN breaks above its intraday high of $231.24, this option could gain 20%+ as the stock approaches $240. Alternatively, the AMZN20251212C235 (next Friday’s $235 call) offers a cheaper entry if the stock consolidates near $230.Stock Play: Buy AMZN near $229.67 (30D support/resistance zone) with a stop-loss below $228.72 (intraday low). First target: reclaim the 30D MA at $233.93; second target: test the $240 call wall. For a hedged approach, buy the AMZN20251205C240 call and sell the AMZN20251205P225 put to create a risk-reversal.Volatility on the Horizon

Amazon’s options flow and fundamentals align for a bullish tilt. The RSI at 40.45 and Bollinger Bands near the lower band suggest a rebound is statistically likely. But don’t ignore the 200D MA at $214.77—it’s a psychological floor. If AMZN holds above $221.06 (200D support), the AI-driven rally could accelerate. This is a stock where the market is already pricing in tomorrow’s growth—today’s job is to ride the wave.

Bottom line: AMZN’s options and news flow scream “buy the rumor, sell the news” for now. But with AI infrastructure bets and institutional backing, the next leg higher might be just getting started.