Amazon (AMZN) Options Signal Bullish Breakout Potential: Key Strike Levels and Trade Setups for Dec 12–19

• Amazon’s Q4 earnings smashed expectations, with $150B revenue and AWS growth fueling optimism.
• Options data shows heavy call open interest at $235 (Dec 12) and $260 (Dec 19), while puts at $200 and $220 hint at downside caution.
• The put/call ratio (0.71) favors bullish positioning, but block trades suggest institutional hedging ahead of key events.

Here’s the takeaway: AMZN’s price action and options flow point to a high-probability upside breakout, but risks linger from antitrust lawsuits and short-term volatility. Let’s break it down.

Bullish Imbalance in Options Flow: Where Institutional Money Is Moving

The options market is screaming about a potential rally. For this Friday’s expirations, the $235 call (AMZN20251212C235) has 23,068 open contracts—the most of any strike. That’s not random. It means a lot of money is betting on a pop above current levels. Even more telling: next Friday’s $260 call (AMZN20251219C260) has 60,608 open contracts, the highest of any OTM strike. That’s like seeing a crowd gather at the top of a hill—you know something’s about to tip.

But don’t ignore the puts. The $200 put (AMZN20251219P200) has 25,295 open contracts, suggesting some big players are hedging against a drop. The block trades back this up: a massive AMZN20251121P240 put trade (830 contracts) and a AMZN20260116C250 call buy (500 contracts) show institutional players are both defending against a crash and eyeing a breakout.

News Flow: Why Bulls Have the Edge

Amazon’s recent headlines are a goldmine for longs. The $10B buyback? That’s a direct tailwind for the stock price. The AI warehouse robots and AWS security acquisitions? They’re positioning Amazon to dominate 2026. And let’s not forget the 35% Prime Day sales surge—that’s real demand, not just hype.

But the antitrust fine and U.S. lawsuit are wild cards. They could trigger a short-term selloff if the EU or DOJ escalates. However, the options data already prices in some of this risk (those $200 puts exist for a reason). The key is whether earnings momentum and AI/cloud growth outpace regulatory noise.

Actionable Trade Setups: Calls, Puts, and Price Levels

For options traders:

• Buy the AMZN20251212C235 call (strike $235, expiring Dec 12). With AMZN trading at $231, this is just 4% out of the money. If the stock breaks above the 30D moving average ($234.33), this option could explode.
• Buy the AMZN20251219C260 call (strike $260, expiring Dec 19). This is a longer shot but aligns with the massive open interest. Use it if you’re bullish on the AI/cloud narrative and want to ride a potential breakout.

For stock traders:

• Enter near $229 (the 30D support level) if AMZN pulls back. Your target? The upper Bollinger Band at $245.82. Stop-loss below $222.79 (200D support).
• Bear put spread: Buy the AMZN20251219P220 put and sell the AMZN20251219P200 put. This caps your risk but lets you profit if the stock dips 5%–7%.

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

The next two weeks are critical. If AMZN holds above $229 and breaks $235, the $260 call could become a lottery ticket. But if the EU fine triggers a gap down, those $200 puts will shine. Either way, the options market is pricing in a story of resilience.

This isn’t about chasing a stock—it’s about reading the room. The bulls are in control, but they’re not ignoring the risks. That’s why the best plays are the ones that let you ride the upside while hedging the downside. Amazon’s AI and cloud bets are too big to ignore, but the regulatory headwinds mean you can’t go all-in blind. Balance is key.

And hey—if you’re still on the fence, remember: the block traders are already placing their bets. Why not you?