Amazon (AMZN) Options Signal Bullish Bias: Key Strike Levels and Trading Setups for 2026

• Perkins Coie boosted its AMZN stake by 8.9% in Q3, now holding $10.09M in shares as AWS growth accelerates.
• Call open interest dominates at $235 and $240 strikes, with a put/call ratio of 0.72 hinting at strong near-term bullish sentiment.
• Block trades show whales buying $250 calls and $230 puts for January 2026, signaling strategic hedging and upside bets.

Here’s the takeaway: AMZN’s technicals, options flow, and news all point to a high-probability upside breakout—but risks linger below $222.50. Let’s break it down.Bullish Sentiment Locked in at $235–$240, With Whale Moves in View

The options market is clearly leaning long-term bullish. This Friday’s OTM call open interest peaks at $235 (32,408 contracts) and $240 (18,129), while next Friday’s data shows similar heat at $235 (15,325) and $240 (15,167). This clustering suggests institutional players are pricing in a potential push above the current $232.38 level—especially with RSI hovering near 50 and the 30D MA at 229.44 acting as a floor.

But it’s the block trades that tell a bigger story. A $480,000 buy of 500 AMZN20260116C250 calls (expiring Jan 16) shows confidence in a mid-2026 rally. Meanwhile, a $524K block of AMZN20260116P230 puts hints at hedging against a pullback. The takeaway? Bulls are stacking up near-term calls while quietly buying downside protection for longer-term bets.

News Flow: AWS Growth and E-Commerce Momentum Fuel Optimism

Amazon’s Q3 beat—$180.17B revenue, 13.4% YoY growth—has investors focused on AWS’s rebound. The cloud unit’s 20% revenue growth in Q3 (up from 13% in 2024) is a major tailwind, with analysts raising price targets to $305. Same-day grocery expansion and AI infrastructure scaling also add catalysts. But don’t ignore the risks: insider selling of 82K shares (~$19M) and regulatory probes into data-center costs could create short-term volatility.

Actionable Trades: Calls for January 2026, Stock Breakouts at 222.50–231.33

For options traders, the AMZN20260102C235 and AMZN20260102C240 strikes (next Friday’s expirations) offer the best risk/reward. With AMZN trading just 0.1% above $232.38, a breakout above the intraday high of $232.95 could trigger a rally toward the Bollinger Upper Band at $236.26. If you prefer the stock, consider entries near $222.50 (200D support) with a target at $236.26. A stop-loss below $221.29 (lower Bollinger Band) would protect against a breakdown.

Volatility on the Horizon: Balancing Bullish Momentum and Downturn Risks

The data paints a clear picture: AMZN is in a short- and long-term bullish trend, with options flow and news both amplifying that signal. But don’t ignore the put open interest at $222.50 and $225—a drop below $221.29 could reignite bearish sentiment. For now, the path of least resistance is higher, but keep an eye on the 200D MA at 215.97 as a critical psychological level. If you’re in for the long haul, the block trades suggest 2026 could be a breakout year—but patience is key.