AMZN Options Signal Bullish Bias: Focus on $230–$260 Strikes as AWS Momentum Drives Setup for Short-Term Gains

• AMZN trades at $228.09, up 0.59% with volume surging to 26.4M shares.
• Options OI highlights: 59,667 calls at $260 (this Friday expiry) vs. 22,541 puts at $220.
• Block trades hint at big money moves: 830 puts at $240 (Nov 21 expiry) and 500 calls at $250 (Jan 16 expiry).

Here’s the takeaway: AMZN’s options market is leaning bullish, with heavy call open interest at key strikes and AWS-driven news fueling optimism. But watch for risks below $222.25. Let’s break it down.

Bullish OI Clusters and Whale Moves: What’s Cooking at $230–$260?

The options chain tells a story. For this Friday’s expirations, calls at $230–$260 dominate open interest, with the $260 strike holding 59,667 contracts. That’s not just noise—it’s a vote of confidence from institutional players. Meanwhile, puts at $215–$220 (22,541 OI) act as a safety net for downside risks.

But here’s the twist: A block trade of 830 puts at $240 (AMZN20251121P240) and 500 calls at $250 (AMZN20260116C250) suggests big players are hedging or positioning for a mid-2026 rally. The $240 put block, in particular, could signal a dark pool bet on volatility ahead of Nov 2025.

AWS Growth and Momentum: Why Traders Are Cheering

Jim Cramer and Guggenheim aren’t the only ones bullish on AMZN. AWS’s $200B backlog and 24% growth forecast for Q1 2026 are hard to ignore. Zacks’ Momentum Score B and 22.5% average earnings beats add fuel to the fire.

Yet, here’s the catch: Retail traders might overreact to AI hype. If AWS growth slows or AWS competitors catch up, the $215–$220 support level (22,425 put OI) could face pressure.

Trade Ideas: Calls at $235, Stock Breakouts at $227.58

For options: AMZN20251226C235 (next Friday expiry, 18,106 OI) is a prime pick. AMZN is trading near the Bollinger Middle Band ($227.58), and a close above $235 would validate the bullish setup.

For stock: Buy AMZN near $227.58 (middle band) with a target at $235. If it breaks below $222.25 (30D support), tighten stops.

Volatility on the Horizon: Balancing Bullish Bias and Caution

AMZN’s technicals and options data align for a short-term rally, but the long-term 200D MA at $215.51 remains a critical floor. With AWS growth as tailwind and OI clusters at $230–$260, this is a setup worth monitoring. Just don’t ignore the puts at $220—volatility could swing both ways.

Bottom line: This week’s options flow and news suggest a high-probability move toward $235–$240. Play it smart, and keep an eye on those block trades—they might hint at a bigger story unfolding in 2026.