Amazon (AMZN) Options Signal Bullish Breakout Potential: Key Strikes and Strategic Entry Points for Dec 5 Expiry

• AMZN trades at $227.84, down 1.95% from $232.38, with RSI at 37.6 (oversold territory)
• Call open interest dominates at $240–$250 strikes, while puts cluster at $220–$225
• Block trades show $1.35M put at $240 and $480K call at $250 ahead of Jan 2026 expiry
• Analysts target $233–$305 price range, with 58/62 "Buy" ratings

The options market is whispering a bullish breakout story for Amazon. With calls outpacing puts 2.8:1 and heavy positioning above $240, traders are pricing in a sharp rebound. But the RSI at 37.6 and Bollinger Bands suggest a volatile crossroads—let’s break it down.Bullish Imbalance in Options and What Block Trades Reveal

The call/put ratio for open interest (0.69) isn’t just skewed—it’s leaning hard into a $240+ narrative. This Friday’s top call strikes ($240, $245, $250) have combined OI of 77,397 contracts, while puts at $225 ($10,649 OI) and $220 ($6,146 OI) hint at defensive positioning. Think of it like a tug-of-war: bulls are stacking bricks above $240, while bears are bracing below $225.

Block trades add intrigue. The $1.35M AMZN20251121P240 put (expiring Nov 21) suggests hedging against a short-term dip. Meanwhile, the $480K AMZN20260116C250 call (Jan 2026 expiry) shows long-term conviction. These aren’t random bets—they’re strategic moves by big players.

News Flow: Logistics Shifts and AI Catalysts Fuel Bullish Case

Amazon’s rumored exit from USPS and $50B AI buildout for the U.S. government are game-changers. Rosenblatt’s $305 price target hinges on AWS’s 20% EBITDA CAGR, while Piper Sandler cites 6.8% Cyber Monday growth. But here’s the catch: CEO Douglas Herrington’s 0.49% stake sale ($583K) at $233.22 adds a layer of caution. Retail investors love the AI narrative, but big money’s mixed signals (Modera’s 2.9% stake increase vs. Herrington’s exit) keep the story nuanced.

Actionable Trade Ideas: Calls for Breakouts, Puts for Protection

For options traders, the AMZN20251205C240 call (this Friday’s $240 strike) is a high-conviction play. If AMZN rebounds above its 30D MA ($233.56), this strike could see explosive demand. For next Friday, the AMZN20251212C250 call offers leverage if AI news catalyzes a breakout.

Stock traders should consider $222.30 (30D support) as a key entry level. A close above $234.33 (middle Bollinger Band) would validate the bullish case, with $240 as the first target. Stop-loss below $221.06 (200D support) would protect against a deeper selloff.

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

This week’s options expiry (Dec 5) could see a test of $225–$227.50 support/resistance. If AMZN holds above $222.30, the $240 call strikes become even more compelling. But don’t ignore the puts: a breakdown below $220 would invalidate the bullish thesis. With AWS re:Invent’s AI tools and logistics shifts in play, this isn’t just a stock—it’s a battleground for retail vs. institutional bets on the future of e-commerce.