Amazon (AMZN) Options Signal Bullish Breakout: Target $260+ as Call Open Interest Surges

• Amazon’s Q3 earnings beat and AWS/advertising growth fuel institutional buying
• Options data shows 0.70 put/call OI ratio, with 60k+ OI at $260 call for next Friday
• Price near 30D support at $229.42, but RSI and MACD hint at short-term bullish momentum

Here’s the takeaway: AMZN’s options market is pricing in a strong upside bias, with heavy call open interest at $260 and $270 strikes. While the stock trades slightly below its 30D MA, technicals and news flow suggest a breakout above $232.11 could trigger a rally toward $260+ — but watch for support breakdowns.

Bullish Sentiment in Options: Calls at $260+ Dominate

The options chain tells a clear story. For next Friday’s expiration (Dec 19), the $260 call (AMZN20251219C260) has 60,388 open interest — nearly triple the nearest put at $200. This isn’t just retail hype: block trades like AMZN20260116C250 (500 contracts bought) and AMZN20251121P240 (830 puts traded) suggest institutional players are hedging or positioning for a rally.

But here’s the catch: the put/call ratio of 0.70 means bears aren’t entirely absent. The $225 put (15,944 OI) and $220 put (10,247 OI) for this Friday could see action if the stock dips below its 200D MA at $215.02. For now, though, the call-heavy skew points to a high conviction in upside potential — especially with AWS growth and grocery expansion driving investor optimism.

News Flow: Earnings, Expansion, and Analyst Upgrades Fuel Bullish Case

Amazon’s Q3 results — $180B revenue, 20% AWS growth — aren’t just numbers. They’re a green light for investors. Analysts like Guggenheim ($315 PT) and DA Davidson ($300 PT) are betting on AWS and advertising as profit engines. The same-day grocery rollout to 2,300 cities? That’s a long-term play to lock in retail dominance.

But here’s the real kicker: institutional investors are piling in. Mairs & Power Balanced Fund and ARK added stakes in Q3, while 332 hedge funds now hold AMZN. This kind of buying isn’t just about short-term gains — it’s a vote of confidence in Amazon’s ability to scale AI-driven cloud and ad revenue.

Actionable Trade Ideas: Calls at $235 and $260, or Buy the Breakout

For options traders, the AMZN20251212C235 (this Friday’s $235 call) is a short-term play if the stock breaks above today’s intraday high of $232.11. The strike is just 1% above current price but has 22,130 OI — a sign of liquidity. For longer-term bets, the AMZN20251219C260 (next Friday’s $260 call) offers leverage if AWS momentum continues.

Stock traders: Consider entry near $229.42 (intraday low) if support holds. A break above $232.11 could target $235–$240, aligning with the heavy call OI. But if the price drops below $221.06 (200D support), tighten stops — the RSI isn’t screaming oversold, but a breakdown here could trigger panic selling.

Volatility on the Horizon: Bullish Trends with Caution

Amazon’s story isn’t just about today’s earnings. It’s about AWS scaling AI workloads and grocery delivery becoming a $1T business. The options market is pricing in a $260+ move by Dec 19 — but that’s only if the stock holds above key support. With Bollinger Bands widening and RSI at 62, the path of least resistance is up — but don’t ignore the 200D MA as a death cross.

Bottom line: This is a high-conviction trade for bulls. The call-heavy options data, institutional buying, and earnings momentum all line up. But keep a close eye on the $229.42–$221.06 support corridor. If Amazon holds, the $260+ target is in play. If not… well, the puts at $200 are there for a reason.