Amazon (AMZN) Options Signal Bullish Bias: Target $240 Breakout with 2026 Expiry Plays

• AMZN trades at $231.17, up 1.2% with volume surging to 6.3M shares.
• Call open interest dominates (248K vs. 177K puts), with heavy concentration at $235–$240 strikes.
• Block trade of 500 contracts in AMZN20260116C250 suggests big money is eyeing a $250 target.

Here’s the thing: AMZN’s options market is screaming bullish—but not without risks. The stock is perched above its 200-day moving average ($215.79) and trading near the upper Bollinger Band ($235.87). With a put/call ratio of 0.71 (call bias) and block trades hinting at institutional positioning, the stage is set for a breakout… or a sharp correction if fundamentals falter. Let’s break it down.

Bullish OI Clusters and Whale Moves

The options chain tells a clear story: traders are betting on a $235–$240 ceiling. This Friday’s top OTM calls ($235, $237.5, $240) have combined OI of 76,302 contracts, while the $250 strike (next Friday expiry) adds another 13,829. That’s not just noise—it’s a price target.

But don’t ignore the puts. The $222.5 strike (OI: 9,451) acts as a psychological floor. If AMZN dips below 228.48 (middle Bollinger Band), that support could crumble. The block trade in AMZN20260116C250 (buy call, 500 contracts) also screams "expect a rally."

News: Fuel for the Fire or a Speed Bump?

Amazon’s Q4 beat and $10B buyback are tailwinds, but the EU fine and supply chain hiccups add friction. Here’s the twist: the AI drone rollout and AWS expansion are structural plays. Retailers might shrug off short-term supply issues, but the long-term story—$2B in drone revenue, 20% AWS market share gains—fuels call buying.

Actionable Trades: Calls for the Bold, Stock for the Patient

• Options Play: Buy AMZN20260102C240 (next Friday expiry) at $231.17. Target $240 (OI hotspot) with a stop at 222.5. If bullish, layer in AMZN20260116C250 (block trade level) as a second leg.
• Stock Play: Enter near $230–$232 (current price) with a target at $240. Use 222.5 as a hard stop. For the aggressive, consider a covered call at $235 to lock in premium.

Volatility on the Horizon

Amazon’s 2026 path hinges on execution. The AI logistics rollout and AWS expansion could push shares past $250, but the EU fine and short-seller activity (1.2 short ratio) mean risks linger. If you’re in, hold for the $240–$250 range but keep a tight stop. This isn’t a gamble—it’s a calculated bet on a company that’s still rewriting its playbook.