AMZN Options Signal Bullish Bias: Key Call Strikes and Block Trades Point to $240–$250 Breakout Potential

• AMZN surges 2.33% to $239.81, trading near 30D high of $240.45
• Call open interest dominates at $240, $250 strikes, with 26960 contracts for next Friday
• Block trades show $2.85M bought in May 2026 $250 calls, hinting at long-term bullish bets

The market is whispering: AMZN could punch through $240 today. Options data and block trades scream for attention—call open interest is piling up at $240 and $250 strikes, while puts at $230 act as a psychological floor. Let’s break down what this means for your trading desk.Bullish Imbalance in Options and Whale Moves

AMZN’s options chain is a one-way street right now. For Friday’s expirations, 26,960 contracts are open at the $240 call strike—nearly double the next highest call. The $250 call isn’t far behind with 17,053 contracts. This isn’t just noise: it’s a crowd betting the stock will clear $240 and test $250. Meanwhile, puts at $230 ($7,067 OI) and $225 ($5,578 OI) suggest a fallback plan if the rally stumbles.

But here’s the kicker: block trades are amplifying this signal. Two $2.85M buys in AMZN20260515C250 (May 2026 $250 calls) show big money isn’t just playing the short-term pop. These are long-term bets—$250 is 5.5% above today’s price. If AMZN cracks $240, these whales could push the stock higher to defend their paper profits.

News Flow: AI and Cloud Fuel Optimism, But Job Cuts Add Noise

Amazon’s AWS partnership with Rio Tinto for copper and its AI-driven health assistant are fueling bullish sentiment. Citi’s $320 price target and institutional buying (Benjamin Edwards Inc. boosted stakes by 38%) back this narrative. But don’t ignore the headwinds: 30,000 corporate job cuts and Raymond James’ $260 target cut (from $275) add near-term jitters.

The key here is timing. If AMZN’s Q4 earnings on Feb 5 exceed $6.31 EPS estimates, the stock could shrug off the job-cut headlines. But until then, the $230–$235 support zone (200D moving average at $219.98 is too far to matter) will be a critical test.

Actionable Trades: Calls for the Breakout, Puts for the Safety Net

For options traders: Buy AMZN20260130C240 (next Friday’s $240 call) if the stock holds above $236.39 (middle Bollinger Band). Target $245—RSI at 53.53 suggests momentum isn’t exhausted yet. If you’re bearish, sell AMZN20260130P230 (next Friday’s $230 put) as a hedge, but only if the price consolidates below $236.

Stock traders: Consider entry near $236 if the 30D moving average holds. First target: $245 (intraday high). Stop below $231.71 (30D support). For the bold: Buy the dip if AMZN dips to $230, but only if volume spikes—this could be a short squeeze play.

Volatility on the Horizon

AMZN isn’t just a stock—it’s a barometer for the Magnificent 7’s comeback. With Cramer urging calm and Citi’s $320 target in play, the next 72 hours will test whether this rally is a flash in the pan or the start of a new leg higher. Keep your eyes on $240: break it, and the $250 calls could ignite a short squeeze. Miss it, and the puts at $230 might cap the damage. Either way, the options market has already priced in a winner.