AMZN Options Signal Bullish Bias: Calls at $235–$300 Dominate as AWS Optimism Drives Volatility

• AMZN’s open interest shows a 0.68 put/call ratio, favoring bullish bets with heavy call volume at $235–$300 strikes.
• Block trades reveal large institutional puts at $220 and calls at $250 ahead of 2026, hinting at strategic hedging and growth bets.
• Analysts raised price targets to $300–$315, citing AWS’s $200B backlog and 24% 2026 growth projections.

Here’s the takeaway: AMZN’s options market is leaning hard into a bullish narrative, with call open interest surging past puts by a 1.46:1 margin. The stock’s technicals aren’t screaming "buy"—its RSI at 39 and MACD below zero suggest caution—but the options data tells a different story. Traders are pricing in a breakout, not a breakdown. And if AWS keeps humming, this could be your chance to ride the trend.

Bullish Calls Dominate, but Puts Signal Caution

The options chain for this Friday (Dec 19) shows a clear imbalance: calls at $235 ($OI: 47,570) and $300 ($OI: 51,322) dwarf put volume at $220 ($OI: 22,541). This isn’t just retail FOMO—it’s institutional positioning. The $235 strike, just above today’s price, is a sweet spot for traders expecting a short-term pop. Meanwhile, the $300 call OI suggests big money is hedging for a 32% rally, likely tied to AWS optimism.

But don’t ignore the puts. A $220 put block trade (AMZN20251226P220) and the $210 put OI ($OI: 7,664) next week signal some hedging activity. These strikes align with AMZN’s 200-day support ($221.06) and 30-day support ($222.25), meaning a breakdown below $225 could trigger panic. The block trade at AMZN20251121P240 ($2.4M turnover) also hints at bearish positioning, though its expiration is weeks away.

AWS Growth Validates the Bull Case

The news isn’t just noise—it’s a catalyst. Analysts from RBC, BMO, and Guggenheim are all pointing to AWS’s $200B backlog and 24% 2026 growth as the "it factor" for AMZN. Thrive Wealth Management’s 11.2% stake increase in Q3 ($5.01M) and insider sales ($19.08M) add layers to the narrative. Retail investors might be eyeing Alexa or Prime Day, but the pros see AWS as the engine. That’s why the $235–$300 call strikes are so popular—they’re betting on cloud infrastructure, not convenience.

Trade Ideas: Calls for Conviction, Puts for Protection

For options traders, the AMZN20251226C235 ($235 call) is a no-brainer. With $47,570 open interest and next Friday’s expiration, it’s a low-cost leveraged play if AMZN breaks above its intraday high of $227.70. Pair it with a short-term trade: buy the $235 call and sell the $245 call (OI: 8,760) to reduce cost. If you’re risk-averse, the AMZN20251226P220 ($220 put) offers downside protection, especially if the stock dips toward its 200-day support.

Stock traders should watch two levels:

• Entry: Consider buying AMZN near $225.50 (lower Bollinger Band) if it holds. A close above $227.69 (intraday high) would validate the bullish case.
• Target: Aim for $235 first, then $245 if AWS news stays positive. A breakdown below $222.25 (30-day support) would force a reevaluation.

Volatility on the Horizon

The next two weeks will test AMZN’s resolve. If AWS growth stories continue to dominate headlines and the stock holds above $225, the $235–$245 range becomes a key battleground. But don’t ignore the puts—those $220 and $210 strikes could turn into a trap if retail enthusiasm fades. For now, the data says "go long," but keep a tight leash. This isn’t a buy-and-hold trade—it’s a calculated bet on cloud computing’s next chapter.