Amazon (AMZN) Options Signal Bullish Bias: Key Strikes and Trade Setups for Dec 5–12 Expirations

• AMZN trades at $228.41, down 1.7% from its 52-week high of $233.5.
• Call open interest dominates at $240–$250 strikes, while puts cluster at $225–$220.
• Block trades hint at big money buying calls for 2026 and selling puts at $240.
• RSI at 37.6 suggests oversold conditions, but MACD trends bearish.

Here’s the thing: AMZN’s options market is screaming bullish—but the stock’s recent drop to $228.41 has traders split. Let’s break down what the data says about where this could go next.

Bullish Call Skew and Whale Moves at $240–$250

AMZN’s options chain is loaded with call open interest at strikes like $240, $245, and $250 for both this Friday (Dec 5) and next (Dec 12). The AMZN20251205C250 and AMZN20251212C250 contracts alone have 22,055 and 10,713 open contracts, respectively. That’s not just retail noise—it’s institutional positioning for a rebound.

But here’s the catch: the stock is currently below its 30-day moving average ($233.56) and hovering near the lower Bollinger Band ($214.70). If AMZN can’t hold above $226.8 (today’s intraday low), those bullish calls could turn into a trap.

Block trades add intrigue. A massive AMZN20260116C250 call was bought for 500 contracts ($480K turnover), while a AMZN20251121P240 put saw 830 contracts traded. Big players are hedging and betting on a 2026 rally.

News Flow: USPS Drama and Capital Spending Could Fuel Volatility

Amazon’s potential exit from its USPS partnership is a double-edged sword. On one hand, cutting costs by building its own delivery network (Rivian vans, drones) could boost margins. On the other, ending a decades-old contract risks logistical hiccups and regulatory backlash.

Meanwhile, the $125B+ 2026 capex plan is a red flag for short-term cash flow but a green light for long-term AI/cloud growth. Analysts are split: some see undervaluation at $234.75 fair price, others warn AWS growth is slowing.

Actionable Trade Ideas: Calls at $235, Puts at $225, and a Core Stock Setup

For options traders:

• Buy AMZN20251212C235 if the stock breaks above $234.32 (middle Bollinger Band). Target: $240–$245.
• Sell AMZN20251212P225 if the stock holds above $226.8. Premium decay could pad your pockets if the drop is shallow.

For stock investors:

• Consider entry near $226.8 (today’s low) if support holds. Target: $235 (30D MA) if RSI rebounds.
• Set a stop-loss below $222.3 (30D support) to avoid a breakdown.

Volatility on the Horizon: Balancing Bullish Bets and Downside Risks

AMZN’s options and technicals paint a mixed picture. The call-heavy open interest and block trades suggest a rally is in the cards—but the RSI at 37.6 and MACD bearish crossover mean this could be a bumpy ride.

Bottom line: Position yourself with a mix of bullish calls and cautious puts. If the stock holds above $226.8, the $240–$250 calls could pay off big. But if it cracks below $222.3, those puts at $225 might save you. Either way, the next 72 hours will tell a lot.

Final thought: This isn’t a “buy and hold” play. It’s a dance with volatility. Stay nimble, and let the data guide your next move.