Amazon (AMZN) Options Signal Bullish Bias: Key Strike Levels and Block Trades Point to Strategic Entry Zones for 2026

• AMZN trades at $231.33, down 0.5% from its 2025 high of $232.98, but remains above its 30D and 200D moving averages.
• Call open interest dominates at $235–$240 strikes (this Friday’s top OTM calls), while puts cluster at $225–$230.
• Block trades reveal a $500K call buy at $250 (expiring Jan 16) and a $1.35M put trade at $240 (Nov 21 expiry), hinting at institutional positioning.

The options market and technicals are painting a clear picture: AMZN is primed for a bullish breakout in early 2026, but traders need to watch support levels like $228.95 (middle Bollinger Band) to avoid a short-term pullback.Bullish Sentiment Locked in Key Strikes

Let’s start with the options data. Call open interest is heavily concentrated at $235 and $240 for this Friday’s expiry, with 27,118 and 18,276 contracts outstanding, respectively. That’s not just noise—it’s a vote of confidence from institutional players who expect AMZN to test those levels before the January 2nd expiration. Meanwhile, puts at $225 and $230 (4,034 and 3,135 OI for next Friday) suggest a minority are hedging against a drop below the 200D MA at $216.68.

The block trades add intrigue. A $500K buy of the AMZN20260116C250 call (expiring Jan 16) signals someone is betting on a sharp rally post-earnings. Conversely, the $1.35M AMZN20251121P240 put trade (expiring Nov 21) hints at lingering bearish caution. But here’s the kicker: the put/call ratio for open interest is just 0.74, meaning calls dominate. That’s a strong bias for upside, especially when paired with AMZN’s long-term bullish Kline pattern.

News Flow Fuels the Narrative

Amazon’s fundamentals are lining up with this bullish setup. Recent headlines highlight AWS’s $33B revenue quarter and a new AI model, Nova, positioning the stock for growth in 2026. Analysts are penciling in a $296 price target (27% upside from current levels), and Evercore ISI just named AMZN its top internet stock. But here’s the catch: the stock has been range-bound since July. That consolidation could mean the market is digesting gains—or it could be a pre-earnings rally masking near-term volatility. Retail investors are already pricing in a 5.59% YTD gain, but the RSI at 58.68 suggests we’re not yet in overbought territory.

Actionable Trades for 2026

For options traders, the AMZN20260109C235 and AMZN20260109C240 calls (expiring Jan 9) are prime candidates. With 8,205 and 8,188 contracts outstanding, these strikes align with both the Bollinger Band upper bound ($236.50) and the 30D support/resistance zone ($232.35–$232.69). A breakout above $235 would validate the bullish case, with targets at $240 and beyond.

Stock traders should consider entries near $228.95 (middle Bollinger Band) if AMZN holds its 200D MA. A close below $221.41 (lower Bollinger Band) would trigger a reevaluation, but the 200D support at $221.06 offers a secondary floor. For a bearish hedge, a put spread at $225–$230 could cap downside risk while preserving upside potential.

Volatility on the Horizon: Positioning for Amazon’s Earnings-Driven Move

The coming weeks will test AMZN’s resolve. With earnings in late January and a $296 price target in play, the stock could surge if AWS growth outperforms. But don’t ignore the risks: a drop below $228.95 would force a reassessment of the bullish case. The key takeaway? Position for a breakout but keep stops tight. The options market isn’t just bullish—it’s strategic. And right now, the data says AMZN is on the cusp of a move that could redefine its 2026 trajectory.