Amazon (AMZN) Options Signal Key Bullish Setup: Focus on $235 Call Wall and $210 Put Defense as Volatility Nears

• AMZN’s price dropped 1.6% to $222.52, breaking below its 200D MA of $215.19 but holding above critical support at $221.06.
• Options data shows heavy call open interest at $235 and $240 strikes (expiring this Friday), while puts pile up at $210 and $220.
• Block trades hint at big money hedging downside risk with a $240 put (AMZN20251121P240) and bullish positioning via a $250 call (AMZN20260116C250).

Here’s the core insight: options market sentiment is split between cautious bearishness and aggressive bullish bets, with technicals pointing to a potential rebound. The stock’s short-term bearish trend clashes with long-term bullish fundamentals—making this a high-conviction setup for traders who can read the signals.

What the Options Chain Reveals About Market Sentiment

Let’s start with the elephant in the room: call options dominate the AMZN chain. This Friday’s top OTM calls ($235, $240, $260) have combined open interest equal to 146,642 contracts—nearly triple the top puts ($200–$220). That’s not just noise; it’s a crowd betting on a rebound. The $235 strike, in particular, is a wall of liquidity with 50,162 calls outstanding. If AMZN breaks above its 100D MA ($228.00) and closes near $235 by Friday, those calls could ignite a short-term rally.

But don’t ignore the puts. The $210 strike has 20,232 puts open, and a block trade of 830 contracts at the $240 put (AMZN20251121P240) suggests big players are hedging a potential drop below $218.85 (lower Bollinger Band). The put/call ratio of 0.71 leans bullish, but the recent block trades—like the 1,000 puts bought at $220 (AMZN20250919P220)—show volatility isn’t priced out.

How Recent News Fuels the Narrative

Amazon’s bullish ratings from Guggenheim and HSBC ($300+ price targets) align with the options data. The $35B India investment plan is a long-term tailwind, but here’s the catch: the stock isn’t pricing in that optimism yet. Retail investors might be skittish after the 1.6% drop, but the fundamentals are strong. Think of it like a car with a broken taillight—still moving forward, but drivers are wary.

The real question is whether the short-term bearish trend (RSI at 58.18, MACD below signal line) will clash with the bullish options bets. My read? The $235 call wall acts as a psychological magnet. If AMZN holds above $221.06 (200D MA support), the bulls could take control.

Actionable Trade Ideas for Today

For options traders, here’s what to consider:

• This Friday (Dec 19): Buy the AMZN20251121C235 if AMZN breaks above $228.57 (middle Bollinger Band). Target: $235–$240. Risk: Below $221.06.
• Next Friday (Dec 26): Buy the AMZN20251121C240 if the stock holds above $222.79 (lower Bollinger Band). This gives extra time for the India news to digest.

For stock traders, the setup is clearer:

• Entry: Consider buying AMZN near $221.06 if it holds as support. Stop-loss below $218.85.
• Target: First aim for $228.57 (middle Bollinger Band), then $235 (call wall).

Volatility on the Horizon

The next 72 hours will test AMZN’s resolve. A close above $228.57 could trigger a short-covering rally, while a break below $218.85 might force the puts at $210 to act as a floor. Either way, the options data shows the market is pricing in a directional move—not a sideways grind. This isn’t a high-probability trade, but it’s a high-reward one for those who can stomach the volatility. Keep an eye on the $235 strike—it’s where the crowd is betting, and crowds can be contagious.