AMZN Options Signal Bullish Bias: Focus on $240–$250 Calls as AI Growth Catalysts Emerge

• AMZN trades at $237.92, down 0.11% with volume surging to 19.8M shares
• Options market shows 0.73 put/call open interest ratio, with heavy call OI at $240, $250, and $300 strikes
• Block trades reveal $900k put purchase at $235 and $528k call accumulation at same strike

Here’s what the data tells us: AMZN’s options market is leaning sharply bullish, with call open interest dominating and key resistance levels primed for a breakout. While short-term volatility exists, the long-term trend and AI-driven fundamentals suggest a clear path higher—if support holds at $232.

Bullish Pressure in Options: Calls Outmuscle Puts at Key Strikes

The options chain tells a story of conviction. For Friday expiration (2026-01-16), 57,996 open interest at the $240 call and 54,036 at $250 show heavy positioning for a near-term rally. The $300 call’s 33,920 OI isn’t just noise—it’s a bet on a sharp move, likely tied to AI-driven revenue optimism. Meanwhile, puts are concentrated at $190 (27,620 OI), a deep OTM level that suggests bearish sentiment remains muted.

Block trades add intrigue. A $900k purchase of the AMZN20260116P235 put (expiring today) hints at hedging activity, while $528k and $407k call accumulations at the same $235 strike suggest some players are betting on a rebound. These mixed signals mean: bulls are in control, but caution is warranted.

AI News Fuels Optimism, Saks Risk Adds Noise

Amazon’s AI shopping assistant Rufus is the headline act. With 250M users and a 60% purchase conversion rate, this tool isn’t just a feature—it’s a revenue engine. Analysts project a $10B GMV boost by 2028, and the $335 price target from Evercore ISI gives bulls a clear north star. The Relative Strength rating climbing to 71 and $1T revenue projections by 2028 only amplify this narrative.

But the Saks bankruptcy ruling introduces a wrinkle. Amazon’s $475M investment at risk could spook short-term traders. However, this seems more of a regulatory speed bump than a fundamental threat. Retail investors are likely filtering this noise out, focusing instead on the AI/cloud growth story.

Actionable Trade Ideas: Calls for the Bold, Stock for the Patient

For options traders, the AMZN20260116C240 call (expiring today) is a high-conviction play. With the stock hovering near $238, a break above $240 could trigger a cascade of stop-loss orders and buying pressure. If you want a longer runway, the AMZN20260123C240 call (next Friday) offers more time for the AI narrative to play out.

A safer bet? A bull call spread using the $240 and $250 strikes. Buy the $240 call and sell the $250 to cap risk while still profiting from a moderate rally. For stock traders, consider entry near $232.23 (30D support) with a target at $245. A break above $245 would test the upper Bollinger Band at $249.65, offering a high-probability entry for those willing to ride the trend.

Volatility on the Horizon: Balancing AI Optimism with Near-Term Risks

The data paints a clear picture: AMZN’s options market is pricing in a bullish breakout, backed by AI-driven fundamentals. But don’t ignore the short-term risks. The $232 support level is critical—if it breaks, the 200D support at $221.06 becomes the next line of defense. For now, the RSI at 57.21 and MACD above the signal line suggest momentum is with the bulls. Just keep an eye on that $190 put strike—it’s a red flag if the stock ever dips there.

Bottom line: This is a stock with a long-term bull case, but today’s options activity suggests a near-term inflection point. Play it smart, and let the data guide your entry.