Amazon (AMZN) Options Signal Bullish Momentum: Key Strike Levels and Trade Setups for Dec 5, 2025

• AMZN trades at $230.44, up 0.58% with volume surging to 4.6M shares.
• Call open interest dominates at $240 and $235 strikes, while puts cluster at $225.
• Q3 earnings beat and AWS growth offset tax settlement risks in Italy.
• Bullish technicals and a 0.68 put/call OI ratio hint at upside bias.

The options market is whispering a clear message: AMZN’s bulls are in control. With call open interest (OI) outpacing puts by nearly 40% and key resistance levels primed, today’s data suggests a high-probability breakout scenario. Let’s break down what traders should watch.Bullish OI Clusters and Whale Moves: A Playbook for Breakouts

The options chain tells a story of conviction. For this Friday’s expirations, $240 calls (OI: 27,554) and $235 calls (OI: 27,401) dominate, while next Friday’s $240 calls (OI: 19,778) remain heavily bid. This isn’t just noise—it’s a sign of institutional positioning. Sellers are hedging against a potential push above the 30D moving average ($233.93), where the 200D line ($214.77) has long acted as a floor.

On the downside, $225 puts (OI: 13,319 next Friday) and $215 puts (OI: 8,760) suggest cautious hedging, but the put/call OI ratio of 0.68 remains firmly in bullish territory. Block trades add intrigue: a 500-lot AMZN20260116C250 call buy (expiring Jan 16, 2026) signals long-term bullish bets, while a 1,000-lot AMZN20250919P220 put purchase hints at near-term downside protection.

News Flow: AWS Growth vs. Regulatory Headwinds

Amazon’s fundamentals are a mixed bag. The $125B 2026 capex plan and AWS Graviton5 launch reinforce its tech dominance, while $209M Italian tax settlement and USPS partnership uncertainty introduce near-term friction. Yet, the market seems to prioritize the positives: AWS’s 20.2% YoY growth and agentic commerce bets are fueling long-term optimism. Retail investors might underestimate how Amazon’s fee cuts for sellers and grocery expansion could stabilize its core business during macro volatility.

Actionable Trade Setups: Calls, Puts, and Price Levels

For options traders, the $240 calls expiring Dec 12 (AMZN20251212C240) offer a compelling angle. With OI at 19,778 and AMZN currently testing the upper Bollinger Band ($251.53), a breakout above $235 could trigger a rally toward $240. If you’re bullish but cautious, a call spread between $235 and $240 (using AMZN20251212C235 and AMZN20251212C240) limits risk while capturing upside.

Stock traders should watch $229.91 (today’s intraday low) as a critical support level. A close above $231.17 (intraday high) would validate the bullish Kline pattern. For a directional play, consider buying AMZN near $229.91 with a stop just below $228.94 (30D support). Targets sit at $235 (first resistance) and $240 (key OI cluster).

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

Amazon’s options activity and technicals align on a bullish bias, but risks linger. The Italian settlement and USPS drama could weigh on sentiment if earnings guidance disappoints. That said, the 0.68 put/call OI ratio and heavy call buying suggest the market expects a rebound. Traders should balance aggression with caution—use the $225–$227.50 put cluster as a hedge if AMZN dips below $229.91.

In the end, AMZN’s story is one of resilience. With AWS driving growth and AI bets reshaping retail, the stock’s long-term trajectory remains intact. Today’s data? It’s a green light for those ready to ride the next leg higher.