AMZN Options Signal Bullish Bias: Calls at $235–$300 Dominate as AWS Optimism Fuels Short-Term Upside Potential

• AMZN trades at $228.75, up 0.88% with volume surging to 34.4M shares.
• Options call open interest peaks at $235–$300 strikes (this Friday’s $235 call OI: 47,570), while puts cluster below $220.
• Block trades hint at big money: A 500-lot buy of the AMZN20260116C250 call ($480K turnover) signals long-term bullishness.

Here’s the takeaway: AMZN’s options market is leaning hard into a short-term rally, with heavy call buying at strikes 6–15% above current price. Technicals and AWS-driven optimism are lining up for a breakout—but watch the $227.58 support level. Let’s break it down.

Bullish Calls at $235–$300 Signal Big Bets on AI-Driven Growth

Options traders are piling into out-of-the-money calls at $235 and $300, with open interest spiking to 47,570 and 51,322 contracts (respectively) for Friday’s expiry. This isn’t just noise—it’s a vote of confidence in Amazon’s AI and AWS momentum. The AMZN20251226C235 call (next Friday’s expiry) sees 18,106 contracts in open interest, suggesting some are hedging for a mid-December pop.

On the downside, puts at $220 ($22,541 OI) and $215 ($22,425 OI) offer a safety net, but the put/call ratio of 0.68 (calls dominate) means the market expects a directional move, not a sideways grind. Block trades like the AMZN20260116C250 buy (500 contracts, $480K turnover) reinforce this: big players are locking in long-term upside potential.

AWS Optimism and Analyst Hype Back the Bull Case

Jim Cramer’s recent "AWS is the real story" narrative isn’t just chatter. Guggenheim’s $300 price target and BMO’s 24% AWS growth forecast have traders pricing in AI-driven revenue. Thrive Wealth’s 11.2% Q3 stake increase (now 22,820 shares) and Morgan Stanley’s $315 target add credibility.

But here’s the catch: Amazon’s "spend to win" strategy worries some. Cramer’s critique of high AI/data center costs could weigh if margins dip. For now, though, the stock’s 13.4% YoY revenue surge and 60% AWS profit contribution are hard to ignore.

Trade Ideas: Leverage Calls at $235 or Go Long at $227.58

• Options Play: Buy the AMZN20251226C235 call (next Friday expiry). With AMZN at $228.75, a $235 strike offers ~3% leverage. If the stock breaks above the 30D MA ($231.04), this call could see 15–20% gains by Dec 26.
• Stock Play: Enter near $227.58 (middle Bollinger Band) with a stop-loss at $225.58 (intraday low). Target $235 if the 30D MA holds.
• Bearish Hedge: A put spread at $220–$215 (using AMZN20251226P220) caps risk if the stock dips below support.

Volatility on the Horizon: Balance Bullish Momentum with Caution

AMZN’s short-term MACD (-1.85) and RSI (39.4) suggest it’s not overbought yet, but the 30D MA at $231.04 is a critical level. If AWS headlines keep flowing—and with $200B in cloud backlog—this stock could surprise to the upside. However, the 200D MA at $215.51 remains a psychological floor.

Bottom line: This week’s options flow and news align for a bullish bias. But don’t ignore the $227.58 support. If it breaks, the puts at $220 could become a lifeline. Stay nimble—this trade is all about timing the AI hype.