Amazon (AMZN) Options Signal Bullish Breakout: Calls at $250–$300 Dominate as TD Cowen Targets $315

• AMZN’s price dropped 2.2% to $241.03, but technicals and options data still lean bullish.
• Call open interest at $250 and $300 strikes dwarfs put activity, with a put/call ratio of 0.75 (calls dominate).
• TD Cowen raised AMZN’s price target to $315, citing explosive growth in AWS and advertising revenue.
• Block trades hint at big money positioning: A 1,375-lot call at $230 (expiring Feb 2026) suggests confidence in near-term upside.

The Big Picture: Why This Setup Matters

AMZN’s price action and options flow tell a story of conviction. Despite today’s dip, the stock remains above key moving averages, and the options market is pricing in a strong breakout. The question isn’t whether AMZN will move—it’s which way and how fast.

Bullish Calls at $250–$300: What the OI Reveals

Let’s start with the numbers. This Friday’s options chain shows AMZN20260116C250 (OI: 57,060) and AMZN20260116C300 (OI: 34,040) as the most watched strikes. That’s not random—it’s a crowd-sourced bet on a $250+ move. The histogram on MACD and RSI at 78.20 suggest overbought conditions, but the Bollinger Bands (upper at $248.64) show the stock is still within its 20-day volatility range.

But here’s the catch: Puts at $225 and $230 have decent open interest too. If AMZN breaks below the 30D support at $232.24, those puts could ignite a short-term selloff. The block trade at AMZN20260220C230 (1,375 contracts) adds intrigue—it’s a whale-sized bet that AMZN won’t let go of $230 anytime soon.

News Flow: Why TD Cowen’s $315 Target Matters

The TD Cowen upgrade isn’t just a number—it’s a signal. Their $315 target hinges on two pillars: AWS margin expansion and advertising revenue growth. AWS’s Q3 34.6% operating margin and new Trainium3 chips show Amazon isn’t just surviving in cloud computing; it’s dominating. Meanwhile, 60% of advertisers plan to boost 2026 spending, and generative AI tools are turbocharging ad ROI.

This isn’t just analyst optimism. The options market is pricing in a similar narrative. The call-heavy OI at $250+ aligns with TD Cowen’s thesis—Amazon’s core businesses are firing on all cylinders, and the stock’s technicals suggest a breakout is imminent.

Actionable Trade Ideas: Calls, Stock, and Exit Plans

For options traders: AMZN20260116C250 and AMZN20260123C250 (next Friday’s $250 call) are prime candidates. The former has 57,060 contracts in play, and the latter’s 9,458 OI suggests liquidity. If AMZN holds above $232.49 (middle Bollinger Band), these calls could see a pop. For a longer play, the AMZN20260220C230 block trade hints at a whale’s confidence in a $230+ floor.

For stock traders: Consider entry near $232.49 if support holds. A break above $247.66 (today’s high) would validate the bullish case, with a first target at $250 and a stretch target at $260. Stop-loss below $221.06 (200D support) would protect against a breakdown.

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

Amazon isn’t just a stock—it’s a bellwether for tech and e-commerce. The options market is pricing in a $250+ move, and the fundamentals back it up. But don’t ignore the puts at $225 and $230. If AMZN’s 30D support fails, the selloff could be sharp.

Bottom line: This is a high-conviction trade. The call-heavy OI, TD Cowen’s $315 target, and AWS’s margin expansion all point to a bullish breakout. But keep a close eye on the $232.49 level. If it holds, the next leg higher could be explosive.