Amazon (AMZN) Options Signal Bullish Bias: Key Strikes and Trade Setups for Dec 5, 2025

• AMZN trades at $231.00, up 0.82% with volume surging to 6.9M shares.
• Options OI favors calls: 2.97M open call contracts vs. 2.04M puts (ratio: 0.69).
• Block trades hint at big money moves: $1.35M in $240 puts (exp 11/21) and $480K in $250 calls (exp 1/16).

Here’s what the data says: AMZN is primed for a bullish breakout—but watch for regulatory headwinds.Bullish OI Clusters and Whale Moves

Options market activity screams "buy the rumor, sell the news." This Friday’s top call open interest (OI) piles up at $235, $240, and $245 strikes, with the $240 call (AMZN20251205C240) leading at 27,554 contracts. That’s not just noise—it’s a magnet for price. If AMZN cracks $235 today, those calls could ignite a short-covering spiral.

But don’t ignore the puts. The $225 put (AMZN20251205P225) has 11,026 OI, suggesting some hedgers are bracing for a pullback. Yet with the 200D MA at $214.77 and Bollinger Bands widening, a drop to $225 would likely find support. The real drama? Block trades like the $1.35M AMZN20251121P240 put and $480K AMZN20260116C250 call—both hinting at long-term positioning.

News That Could Fuel the Fire

Rosenblatt’s 26.69% price target ($294.40) and Freemont’s 30.7% stake boost add institutional credibility to the bullish case. But here’s the twist: regulatory scrutiny over pricing practices could create volatility. Think of it like a storm before the calm—scrutiny might scare short-term traders, but the AWS AI thesis (projecting $2.6T intrinsic value) is a long-term tailwind.

Actionable Trade IdeasFor Options Traders:

• Buy AMZN20251212C235 (next Friday’s $235 call): With 18,218 OI and the stock trading near $231, a breakout above $235 could trigger a rally toward $240. Target: $240 (30-day MA level).
• Sell AMZN20251212P225 (next Friday’s $225 put): If AMZN holds above $228.94 (30D support), this put could decay in value. Stop if price drops below $227.50.

For Stock Traders:

• Entry near $229.81 (intraday low) if AMZN tests support. Target: $233.27 (middle Bollinger Band) first, then $235 (key OI level).
• Exit above $235 to lock in gains, or hold for a push toward $240 (where 27K calls are waiting to explode).

Volatility on the Horizon

AMZN’s technicals and options data align for a bullish bias, but don’t ignore the risks. The RSI at 40.45 suggests oversold territory, but the MACD histogram (-0.186) warns momentum is still lagging. Play this like a chess game: use the $235 call as your queen, but keep a pawn at $225 to hedge. By next Friday, we’ll know if this is a breakout or a false flag. Either way, the AWS AI story gives this trade legs for 2026.