Amazon (AMZN) Options Signal Bullish Bias: Key Strike Levels and Trade Setups for Dec 12, 2025

• AMZN trades at $226.09, down 1.8% from its 52-week high of $230.28, with volume surging to 15.3M shares.
• Open interest shows a 70% call skew (put/call ratio: 0.7), with heavy call OI at $235–$260 and puts at $200–$225.
• Block trades hint at institutional hedging: A $1.35M put at $240 (expiring Nov 21) and a $480K call at $250 (Jan 16) stand out.

The market is whispering two truths: Short-term sellers are testing support near $225, but long-term bulls are stacking calls above $235. Let’s break down why this tension creates a high-probability trade.Bullish Imbalance in Options and What It Means

The options chain tells a story of cautious optimism. For this Friday’s expiration, calls at $235 ($OI: 17,870) and $240 ($OI: 22,959) dominate, while puts at $225 ($OI: 13,540) and $220 ($OI: 9,500) act as downside cushions. But the real signal comes from next Friday’s chain: Calls at $260 ($OI: 59,933) and $270 ($OI: 52,397) suggest big money is pricing in a post-earnings pop or a breakout above the 30D MA ($234.42).

Block trades add context. That $1.35M put at $240 (AMZN20251121P240)? It’s a hedge for a position that expects a short-term dip but not a collapse. Meanwhile, the $480K call at $250 (AMZN20260116C250) implies a bet on AWS-driven growth materializing by early 2026.

News Flow: India Bet Fuels Long-Term Optimism

Amazon’s $35B India push is the elephant in the room. Analysts at TD Cowen are pricing in a $300 target, citing AI infrastructure and advertising tailwinds. This aligns with the call-heavy options data—investors are buying time (and strikes) to capitalize on a potential 2026 inflection point.

But here’s the catch: The market isn’t ignoring risks. The $35B investment requires execution, and regulatory hurdles in India could cause volatility. That’s why puts at $200–$220 are seeing action—they’re insurance against a short-term selloff if near-term earnings miss expectations.

Actionable Trade Setups

For options traders, the most compelling plays are:

• Bull Call Spread: Buy AMZN20251219C235 (strike at $235, next Friday’s expiry) if AMZN holds above its 30D MA ($234.42). Target a close above $237.5 (Bollinger Band middle + 1.5% buffer).
• Put Hedge: Buy AMZN20251219P225 if AMZN dips below $228.94 (30D support). Exit if it rebounds above $229.67.

For stock traders, consider:

• Entry near $228.50 if AMZN holds above its 200D MA ($215.10). Target $235–$237.5 as a short-term ceiling.
• Stop-loss at $225.12 (today’s intraday low) to protect against a breakdown.

Volatility on the Horizon

Amazon’s story is a tug-of-war between near-term profit-taking and long-term AI-driven growth. The options market is pricing in a 2026 bull case, but today’s $226 level is a crossroads. If AMZN holds above $228, the 30D MA becomes a springboard for a retest of $235. If it cracks below $225, watch for a test of the 200D MA. Either way, the India bet and AWS momentum give bulls a strong narrative to lean on.

Final Take: This isn’t a binary call—it’s a setup. Stack directional bets with options while keeping a tight stop in the stock. The market is giving you a window to play both sides of Amazon’s growth story.