AMZN Options Signal Bullish Bias: Calls at $235–$240 Dominate as AI Investments Drive Growth Outlook

• Institutional investors added $3.57B to Amazon ahead of 2026 AI rollouts
• Q3 2025 earnings beat by 24% with AWS growth hitting $33B
• Options market shows 33% more bullish positioning (call OI: 2.45M vs put OI: 1.81M)

Here’s the takeaway: Amazon’s options market is painting a clear picture of optimism. With call open interest surging at $235–$240 strikes and block trades hinting at big-money bets, the stock shows upside potential despite today’s 0.47% dip. Let’s break down why this matters for traders.

Bullish Imbalance in Options and Whale Moves

The options chain tells a story of conviction. For this Friday’s expiration, 27,118 contracts are open at the $235 call strike—nearly double the nearest put’s 9,527 open interest at $230. This isn’t just noise: it’s a vote of confidence. The $240 call (OI: 18,276) and $250 call (OI: 13,837) further reinforce the pattern, suggesting traders expect a push above current levels.

But don’t ignore the shadows. The $225 put (OI: 4,034) and $185 put (OI: 3,689) for next Friday’s expiration act as a hedge. It’s like seeing a crowd rushing to buy tickets for a concert while a few hold umbrellas—most expect sunshine, but some prepare for rain.

Block trades add intrigue. A 500-lot AMZN20260116C250 call purchase ($480K notional) signals big players are betting on a $250+ move by mid-January. Meanwhile, the AMZN20260116P230 put trade ($524K) shows someone’s hedging against a pullback. These moves hint at a volatile January ahead.

News Flow Fuels the Bull Case

Amazon’s fundamentals are firing on all cylinders. Swedbank’s 6% stake increase ($3.57B invested) and Q3’s $180B revenue beat prove institutions aren’t just watching—they’re committing. The $125B AI/data center investment? That’s the rocket fuel. Think of it like a chef prepping for a feast: Amazon’s building infrastructure to serve AI clients in 2026.

Analysts aren’t just nodding—they’re upgrading. Truist’s $290 target and Piper Sandler’s “Overweight” rating align with the options data. This isn’t a fluke; it’s a coordinated signal. The trick is timing: will the stock surge before or after the January expiration? That’s where the block trades give us clues.

Actionable Trade Ideas for 2026

For options traders, the AMZN20260109C235 call (next Friday’s $235 strike) offers a sweet spot. With the stock trading at $231.44, this $3.56 out-of-the-money call gives you leverage if the AI hype translates to a breakout. If you prefer a safer play, consider a call spread: buy the AMZN20260109C235 and sell the AMZN20260109C240 to reduce cost. Both expire Jan 9.

Stock traders should watch $221.06 (200D support) and $232.35 (30D support). If AMZN holds above $221, consider entries near $225–$228 with a target at $240 (aligning with heavy call OI). For risk management, set a stop below $216.68 (200D MA). The Bollinger Upper Band at $236.50 could act as a near-term ceiling, but breakouts here would validate the bullish case.

Volatility on the Horizon

Amazon’s options market isn’t just bullish—it’s strategic. The concentration of call OI at $235–$240 and block trades at $250 suggest a potential inflection point in early January. With AWS growth accelerating and AI investments materializing, this could be the setup for a multi-week rally. The key is to stay nimble: if the stock tests $221 support, the puts at $225–$230 could offer a hedge. But right now, the data screams upside.

Bottom line: This isn’t just a stock—it’s a story. And the options market, earnings beats, and institutional bets are all writing the same chapter: Amazon’s next act is about to begin.