Amazon (AMZN) Options Signal Bullish Breakout Potential: Calls at $250 Dominate as Analysts Target $320

Introduction

• AMZN surges 2.27% to $239.66, breaking above its 30-day moving average of $233.10.
• Call open interest outpaces puts 3:1, with heavy concentration at $240–$250 strikes.
• Citi and Wall Street analysts see 25–35% upside, targeting $295–$320.

The options market and technicals are painting a clear picture: traders are betting on a short-term breakout. With AMZN trading near its 52-week high and bullish analyst sentiment, the stock is at a critical inflection point. Let’s break down what the data says about where the action is—and where to watch for risks.

Bullish Imbalance in Options: Calls at $250 Signal Big Bets

The options chain tells a story of conviction. For this Friday’s expiration, calls at $250 ($26,621 OI) and $240 ($23,365 OI) dominate, while puts max out at $230 ($7,067 OI). This 3:1 call/put ratio suggests aggressive bullish positioning. The next Friday’s chain amplifies this: $240 calls ($26,960 OI) and $250 calls ($17,053 OI) are the most watched strikes.

But here’s the twist: block trades on the $250 call (AMZN20260515C250) show big players are moving. Two massive buys of 2,000 contracts each (totaling $5.63M) and a sell of 1,650 contracts (worth $2.26M) indicate a tug-of-war at that strike. If AMZN holds above $236.39 (middle Bollinger Band), these calls could ignite a rally.

News Flow: Headwinds and Tailwinds Collide

Amazon’s recent headlines are a mixed bag. The 14,000 corporate job cuts and tariff-driven price hikes are short-term headwinds, but the doubling grocery sales and AWS copper deal are long-term tailwinds. Citi’s $320 price target hinges on the stock weathering near-term pain while capitalizing on AI and cloud growth.

The key question: Will investors discount the job cuts as a necessary cost of efficiency, or will it spook the market? The options data leans toward the former—call buyers are clearly pricing in a post-earnings rebound, especially with the $295 Wall Street average target just 15% away.

Actionable Trade Ideas: Calls, Breakouts, and Strategic Entries

For options traders, the most compelling setup is the AMZN20260130C240 (next Friday’s $240 call). With 26,960 open contracts and AMZN trading at $239.66, this strike is just $0.34 out of the money. If the stock closes above $240 by Friday, the call could see exponential gains. A secondary play: AMZN20260130C250, which offers leveraged exposure to a $250+ move.

For stock traders, consider scaling into long positions near $236.39 (middle Bollinger Band). A break above $240.45 (intraday high) would validate the bullish case, with a first target at $248.52 (upper Bollinger Band) and a stretch target at $250. A stop below $231.71 (30-day support) would protect against a breakdown.

Volatility on the Horizon: Balancing Risks and Rewards

The next 72 hours will be pivotal. AMZN’s earnings on February 5 could either validate the bullish thesis or trigger a pullback. The block trades at $250 suggest big players are hedging for a post-earnings move, but the $230 put OI ($5,393 for next Friday) indicates some downside protection is in place.

In the long term, AMZN’s 200-day moving average ($219.98) and bullish Kline pattern suggest the stock is on a multi-year uptrend. But for now, the focus is on executing short-term plays that align with both the options frenzy and the fundamentals.

Bottom line: This is a stock at a crossroads. The options market is pricing in a breakout, the technicals are primed for a move, and the analysts are bullish. But as always, volatility is a given—so trade with a plan and keep stops tight.