Amazon (AMZN) Options Signal Bullish Breakout: Calls at $250–$300 Dominate as AI-Driven Growth Fuels Short-Term Upside

• AMZN trades at $245.25, down 0.5% from its 52-week high but still above key moving averages.
• Options data shows a 33% call/put open interest imbalance, with heavy call volume at $250–$300 strikes.
• AWS margin expansion and AI-driven demand justify $315+ price targets from analysts.

Here’s the core insight: AMZN’s options market is pricing in a strong near-term upside breakout, with heavy call open interest at $250–$300 strikes and a bullish technical setup. While the stock faces minor near-term pressure, the fundamentals and options flow suggest a high probability of a rebound toward $260+ in the coming weeks.

Bullish Imbalance at $250–$300 Calls, Whale Activity at $245 Puts

The options chain tells a clear story. For this Friday’s expiration, AMZN20260116C250 (OI: 57,060) and AMZN20260116C300 (OI: 34,040) dominate call open interest, showing heavy positioning for a $250+ move. Meanwhile, the AMZN20260515P245 block trade—selling 300 puts at $245—hints at institutional confidence in support near $245–$250.

This isn’t just noise. The 0.75 put/call ratio (calls: 2.5M, puts: 1.9M) suggests aggressive bullish bets. But here’s the catch: if AMZN dips below $242.72 (intraday low), the $225–$230 put strikes could ignite panic selling.

AWS Margins and AI News Validate the Bull Case

Amazon’s Q3 results were a masterclass in execution. AWS hit a 34.6% operating margin ($11.4B profit) with a $132B annualized run rate. Analysts at TD Securities just raised the price target to $315, citing AI-driven demand and custom silicon like Trainium3.

The recent launch of Alexa+ Web—tied to Prime—adds another revenue stream. This isn’t just cloud growth; it’s ecosystem stickiness. Institutional buyers like Generali (now 1.7% owner) are doubling down, while insiders selling 79K shares (~$18.5M) seem like minor noise against the broader trend.

Actionable Trades: Calls for Breakouts, Stock for Precision Entries

For options traders:

• AMZN20260116C250 (this Friday’s $250 call): If AMZN holds $245, this strike could see a 10–15% move by expiration.
• AMZN20260123C255 (next Friday’s $255 call): A safer play if the stock consolidates near $245–$250.

For stock buyers:

• Entry near $245 (support at 200D SMA): Target $250 first, then $260. Stop-loss below $242.72 invalidates the setup.
• Short-term top at $247.66? Wait for a pullback to $242–$244 before adding.

Volatility on the Horizon: Positioning for Amazon’s AI-Driven Ascent

The next 30 days are critical. AMZN’s Q4 earnings (late January/early February) and AWS’s 3.8-year backlog visibility mean the stock isn’t just reacting to today’s news—it’s pricing in 2026 growth. The $200B AWS backlog and 35.9% trailing margin justify the 31X P/E, even if short-term volatility hits.

But don’t ignore the risks. Italy’s $878M fine and Microsoft’s Azure margin edge (43% vs. AWS’s 34.6%) could create noise. Still, the options flow and fundamentals tilt heavily bullish.

Bottom line: This is a stock in motion. The question isn’t if AMZN will go higher—it’s when the next leg up will start.