Amazon (AMZN) Options Signal Bullish Bias: Key Strikes and Trade Setups for Dec 12–19 Expirations

• AMZN trades at $226.71, down 1.2% from its 52-week high of $230.82
• Call open interest surges at $260 and $270 strikes for next Friday (Dec 19), while puts dominate at $200 and $220
• Institutional buying and AWS AI partnerships boost long-term optimism, but insider sales and energy regulations add near-term noise

The options market is whispering a clear message: traders are betting on a rebound. With call open interest spiking at key strikes and technicals hinting at a short-term bounce, AMZN sits at a crossroads between bearish momentum and bullish conviction. Let’s break down what the data really means.Where the Money Is: Calls at $260, Puts at $200, and Whale Moves

The options chain tells a story of cautious optimism. For this Friday’s expirations, calls at $240 ($21,299 open interest) and $235 ($21,143) dominate, but the real fireworks are next week. The $260 call ($61,344 OI) and $270 call ($53,470 OI) are magnets for capital, suggesting a belief that AMZN could reclaim $230+ territory. Meanwhile, puts at $200 ($25,591 OI) and $220 ($20,327 OI) act as a safety net for downside risks.

But don’t ignore the block trades. A massive 830-contract put block at $240 (expiring Nov 21) and a 500-contract call buy at $250 (Jan 16) hint at institutional hedging or speculative bets. These moves suggest big players are bracing for volatility—either way, they’re not sitting idle.

News That Could Tip the Scales

Amazon’s story isn’t just numbers—it’s about narratives. Institutional investors added 5,017 shares in Q2, and analysts like DA Davidson raised price targets to $300. The AWS-OpenAI partnership? A game-changer for cloud revenue. But here’s the catch: insider sales and energy regulations could slow the momentum. The market is pricing in growth, but execution matters. If AWS delivers, the $260 call buyers might get their wish. If not, the $200 puts could become a lifeline.

Actionable Trades: Calls, Puts, and Price Levels to Watch

For options traders, the AMZN20251219C235 call (Dec 19, $235 strike) is a sweet spot. With 45,059 contracts in open interest, it’s a liquid, leveraged bet if AMZN breaks above its 30-day support at $228.94. A tighter play? The AMZN20251219C260 call ($61,344 OI) for a high-risk, high-reward move if AWS news sparks a rally.

On the downside, the AMZN20251219P220 put ($20,327 OI) offers protection if the stock dips below its 200-day moving average ($214.87). For stock traders, consider entries near $228.94 (30-day support) with a target at $235 if the RSI (currently at 43.8) rebounds. A breakdown below $221.06 (200D support) could justify a short-term put play at the $225 strike.

Volatility on the Horizon: Positioning for Amazon’s Next Move

The data paints a mixed but ultimately bullish picture. Short-term technicals warn of a pullback, but long-term fundamentals—AWS, AI, and institutional backing—keep the ceiling high. Traders should balance aggression (calls at $260) with caution (puts at $200). The key is timing: if AMZN holds above $221, the bulls control the narrative. Below that? The bears get a seat at the table. Either way, December is shaping up to be a pivotal month for this $2.45T giant.