Amazon (AMZN) Options Signal Bullish Setup: Target $240+ as AI and Earnings Fuel Momentum

• Amazon’s Q4 earnings beat and AI-driven logistics news boost 2026 optimism
• Options data shows heavy call open interest at $235–$240 strikes, hinting at a potential breakout
• Put/call ratio of 0.74 suggests aggressive bullish positioning, but watch $221.32 support

Here’s the takeaway: AMZN’s technicals, options flow, and news all point to upside potential—but with clear price levels where momentum could stall or accelerate. Let’s break it down.

Bullish Bets and Hidden Risks in the Options Chain

The options market is whispering a story of cautious optimism. For Friday’s expiration (Jan 2, 2026), the AMZN20260102C235 and AMZN20260102C240 calls dominate open interest, with 24,669 and 20,740 contracts outstanding. That’s not just noise—it’s a sign that institutional players are hedging or speculating on a near-term push above $235. The next Friday’s chain (Jan 9) amplifies this, with AMZN20260109C235 at 7,044 OI.

But don’t ignore the puts. The AMZN20260102P230 strike has 8,562 OI, acting as a soft floor. If AMZN dips below $230, that could trigger a wave of stop-loss orders. The real danger? A breakdown below the 200D support at $221.06—where the Bollinger Band lower bound ($221.32) and historical support ($221.06–$222.79) align.

Block trades add intrigue. A 500-lot AMZN20260116C250 call purchase ($480K turnover) suggests someone’s eyeing a $250+ move by mid-January. Meanwhile, a 385-lot AMZN20260116P230 put trade ($524K) hints at hedging against a short-term pullback.

News That Could Tip the Scales

Amazon’s recent headlines are a goldmine for bulls. The Q4 earnings beat ($1.25 vs. $1.10) and $550B revenue guidance are textbook catalysts. The AI logistics rollout and Texas data center expansion aren’t just operational wins—they’re tailwinds for AWS growth, which drives 40% of Amazon’s profits.

But here’s the catch: The market already priced in much of this. The stock’s 15% YTD gain and current price near the 30D MA ($228.31) suggest it’s in a consolidation phase. If the AI/drones narrative gains traction, AMZN could retest the Bollinger Band upper bound at $236.72. However, a stumble in January’s rate decision environment (Federal Reserve’s policy uncertainty) might force a retest of the $221.32 support.

Actionable Trade Ideas for AMZN

For options traders:

• Bullish Play: Buy the AMZN20260102C235 call (strike just above current price) if AMZN holds $230. Target a close above $237.50 by expiration.
• Bearish Hedge: Sell the AMZN20260102P225 put (7,213 OI) if you’re long the stock. This creates a collar if AMZN dips.

For stock traders:

• Entry: Consider buying AMZN near $221.06–$222.79 if it breaks below $230. The 200D support is a key level—break it, and watch for a rebound.
• Target: If the stock holds above $230, aim for $240–$242.50 as the next resistance cluster.

Volatility on the Horizon: Positioning for Amazon’s 2026 Surge

The big picture? AMZN is at a crossroads. The options data and news flow scream for a breakout—but the RSI at 59.54 and MACD histogram (0.818) suggest momentum is still building. If the stock clears $236.72 (Bollinger upper band), it could enter a new bullish phase. But don’t ignore the risks: A close below $229.02 (middle Bollinger band) would signal a shift in sentiment.

Bottom line: This is a stock primed for a move. The question isn’t if—it’s when. And for now, the options market is betting on a January rally.