Amazon (AMZN) Options Signal Bullish Breakout Potential: Calls at $235–$240 Dominate as $35B India Play Fuels 2026 Optimism

• AMZN surges 1.6% to $231.56 amid $35B India investment news
• Call open interest spikes at $235 and $240 strikes for Friday expiration
• Block trades hint at whale positioning ahead of 2026 AI rollout

Here’s the bottom line: AMZN’s options market is screaming bullish — but with a twist. While call buying dominates at key strike levels, the technicals show a short-term bearish bias. This creates a high-probability setup for a breakout if the stock holds above $229. Let’s break it down.

Bullish Imbalance at $235–$240: Whale Moves and Retail Frenzy

The options data tells a clear story: traders are betting big on a $235–$240 breakout. For Friday expiration (Dec 12), the top call strikes are AMZN20251212C235 (OI: 23,068) and AMZN20251212C240 (OI: 22,196). That’s not just retail noise — it’s institutional positioning. The AMZN20251121P240 block trade (830 contracts, $1.35M turnover) suggests smart money is hedging against a short-term pullback while staying bullish on the long game.

But don’t ignore the puts. The AMZN20251212P225 strike (OI: 15,753) acts as a psychological floor. If AMZN dips below $229 (30D support), that put-heavy zone could trigger a rebound. The key takeaway? This is a two-way trade — but the odds are skewed toward the upside.

India Investment and AI Hype: Why the Options Market is Right

Amazon’s $35B India expansion isn’t just a headline — it’s a catalyst. Analysts are pricing in a $300 target by 2026, and the options market is already pricing in part of that. The India play dovetails with AWS’s 20%+ growth projections and Nova AI’s 2026 launch. Retail investors are catching on: same-day grocery expansion and robotics deployments are fueling FOMO.

But here’s the catch: the RSI at 58 and MACD below zero suggest the stock is in a ranging pattern. That means the $235–$240 call-heavy zone could act as a magnet — but only if AMZN holds above $229. If it breaks below, the 200D support at $221.06 becomes critical.

Actionable Trade Ideas: Calls for Friday, Stock for the Long Game

For options traders: AMZN20251212C235 and AMZN20251212C240 are your best bets. If AMZN closes above $232 by Friday, these strikes could see 10–15% gains. For next Friday (Dec 19), eye AMZN20251219C260 (OI: 60,608) as a lottery ticket play on the $300 target.

For stock buyers: Consider entries near $229 (30D support) with a stop below $225.50. Target zones are $235 (Bollinger middle band) and $240 (call-heavy resistance). If AMZN breaks above $232.42 (intraday high), re-enter at $233 with a tighter stop.

Volatility on the Horizon: Bullish Trends Ahead

The next 30 days are critical. Amazon’s AI model Nova and AWS re:Invent momentum could push the stock toward $250 by year-end. But watch for a test of $221.06 — a break below that would signal a deeper correction. For now, the options data and news flow align: this is a stock primed for a breakout. Stay bullish, but keep a tight stop. The market isn’t giving up its gains without a fight.