Amazon (AMZN) Options Signal Bullish Bias: Key Strike Levels and Trade Setups for Dec 26 Expiry

• AMZN trades at $228.51, up 0.51% with volume surging to 18.8M shares.
• Call open interest dominates at $235, $230, and $240 strikes (expiring Dec 26), while puts cluster at $200–$225.
• Block trades show big money buying the AMZN20260116C250 call and hedging with puts like AMZN20260116P230.

Here’s the takeaway: The options market is pricing in a clear bullish bias for AMZN ahead of the Dec 26 expiry, with heavy call open interest and block trades pointing to a potential breakout above $235. But watch for short-term volatility as the RSI hovers near oversold levels and the 200D MA at $215.64 acts as a key support. Let’s break it down.

Bullish Call OI and Block Trades: A Playbook for Big Money

The options chain tells a story of conviction. For the Dec 26 expiry, call open interest peaks at $235 (22,877 contracts) and $240 (13,324 contracts), while puts trail at $200 (8,451 contracts). This imbalance suggests institutional players are betting on a rally above $235—likely targeting the 30D MA at $230.52 and the upper Bollinger Band at $236.26.

But it’s the block trades that catch the eye. A 500-lot buy of the AMZN20260116C250 call (expiring Jan 16) signals a long-term bullish stance, while a 385-lot AMZN20260116P230 put hedge hints at risk management. These moves align with Wall Street’s $295.80 price target, which implies a 30% upside from current levels.

News and Sentiment: AWS Growth vs. Near-Term Headwinds

Amazon’s recent news is a mixed bag. Analysts are bullish on AWS’s AI-driven Trainium3 chips and advertising revenue growth, but the stock underperformed in 2025 amid competition from Walmart and Temu. The Wedmont Private Capital stake increase and Zacks Rank #2 (Buy) add credibility to the long case. However, the 200D MA at $215.64 and RSI at 39.27 suggest a pullback could test support before a breakout.

Actionable Trade Ideas: Calls for Dec 26 and Stock Breakouts

For options traders:

• Buy the AMZN20251226C235 call (Dec 26 expiry). With 22,877 contracts in open interest, this strike is a liquidity sweet spot. Target a $235–$240 move, with a stop-loss below $226.70 (intraday low).
• Next-week setup: The AMZN20260102C240 call (OI: 12,662) offers a longer runway for a $240+ rally.

For stock traders:

• Enter long near $228.50 if AMZN holds above the 30D MA at $222.25. First target: $235 (MACD crossover zone). Second target: $236.26 (Bollinger Band).
• Hedge with the AMZN20251226P222.5 put (OI: 7,599) if volatility spikes.

Volatility on the Horizon: Positioning for Amazon’s AI-Driven Rebound

The data paints a clear picture: AMZN is poised for a short-term rally driven by AI optimism and institutional call buying. But don’t ignore the risks—support at $222.25 is fragile, and a break below $219.93 (lower Bollinger Band) could trigger panic. For now, the call-heavy options chain and block trades suggest a bullish bias, but stay nimble. If AMZN cracks $235 by Dec 26, the 200D MA at $215.64 could become a psychological floor for a deeper rebound in early 2026.