Amazon (AMZN) Options Signal Bullish Breakout Potential: Calls at $260 Dominate as Analysts Target $300

• AMZN trades at $228.4 (-0.8% intraday) amid a short-term bearish trend but long-term bullish setup.
• Options data shows heavy call open interest at $260 (next Friday expiry) and puts at $200, signaling a bullish bias with downside caution.
• Three major analysts (Guggenheim, Rosenblatt, TD Cowen) raised $300+ price targets, citing AI/cloud growth and strong AWS adoption.

Here’s the takeaway: AMZN’s options market and technicals are locked in a tug-of-war—short-term sellers are testing support, but long-term bulls are stacking call options at $260 and higher. With analysts backing $300+ price targets, the stock could break out if it holds above key levels. Let’s break down what’s really happening.

Bullish Calls at $260 vs. Defensive Puts at $200: What the Options Say

The options chain tells a clear story. For next Friday (Dec 19) expirations, the AMZN20251219C260 call has 59,933 open contracts—the highest of any strike. That’s not just noise: it means institutional players are betting on a sharp rebound. Meanwhile, puts at $200 (25,434 OI) suggest hedgers are bracing for a 12% drop.

But here’s the twist: block trades hint at hidden moves. A massive 830-contract put block at $240 (expiring Nov 21) and a 500-contract call buy at $250 (Jan 16 expiry) show big players are positioning for both near-term volatility and long-term upside. The 0.70 put/call ratio (favoring calls) reinforces the bullish tilt.

Analyst Hype vs. Technical Reality: Can AMZN Deliver?

Guggenheim, Rosenblatt, and TD Cowen aren’t just throwing darts—they’re citing real catalysts: a $38B OpenAI deal, AWS enterprise growth, and a $50B AI infrastructure push. But AMZN’s current price ($228.4) is below its 30D MA ($234.42) and 200D MA ($215.10). That creates tension: bulls need a rebound above $229.14 (middle Bollinger Band) to validate the $300 thesis.

The risk? If AMZN breaks below $221.06 (200D support), the puts at $200 could trigger a cascade. But with holiday sales and AI momentum in play, the bulls have a strong case.

Actionable Trades: Calls, Puts, and Stock Entries

1. Options Play: Buy AMZN20251219C260 (next Friday expiry) if AMZN closes above $229.14 today. Why? The $260 strike is a liquidity magnet—any pop past $230 could ignite a rally toward that level.

1. Stock Entry: Consider buying AMZN near $227.55 (today’s intraday low) if it holds above $221.06. Target $234.42 (30D MA) first, then $240 (call-heavy zone).

1. Bearish Hedge: Sell a put spread (e.g., AMZN20251219P220 + buy AMZN20251219P210) if AMZN dips below $228.94 (30D support). Caps risk while profiting from a rebound.

Volatility on the Horizon: What to Watch

The next 72 hours will be critical. If AMZN holds above $227.55 and rallies past $229.14, the $260 call buyers could push it toward $240+. But a breakdown below $221.06 would validate the puts at $200. Either way, the options market is pricing in a binary outcome: a sharp move higher or a controlled pullback. With AI and AWS momentum behind it, AMZN’s best bet is to test the bulls’ optimism—and maybe exceed it.