AMZN Options Signal Bullish Bias: Key Strike Levels and Whale Moves Point to $235–$260 Breakout Potential

• AMZN trades at $229.04, down 1.18% from $231.78, with Bollinger Bands squeezing between $217.41 and $242.26
• Call open interest dominates (2.89M vs. 2.03M puts), with $260 and $270 calls (next Friday exp) seeing 60K+ OI
• Block trades show $1.35M put purchase at $240 (Nov 21 exp) and $480K call buy at $250 (Jan 16 exp)

The market is whispering a breakout: Options data and technicals align on a bullish bias, but with caution below $221.06 (200D MA). Here’s why AMZN could test $235–$260 this week.Bullish OI Clusters and Whale Moves Signal Aggressive Bets

Let’s start with the options chain. For next Friday’s exp (Dec 19), the AMZN20251219C260 and AMZN20251219C270 calls dominate with 60K+ open interest—nearly triple the nearest puts. This isn’t just retail FOMO; it’s institutional positioning. The $260 call, for instance, sits 13% above current price, suggesting big money expects a sharp rebound.

But don’t ignore the puts. The AMZN20251219P200 put has 25K OI, a 12% downside buffer. That’s not just hedging—it’s a floor. If AMZN dips below $228.94 (30D support), watch for a bounce. The block trade at $240 puts ($1.35M) also hints at dark pool activity, possibly from funds hedging long positions.

News Flow: AI Wins vs. Labor Headaches

Amazon’s AI bets are paying off. Anthropic’s $50B data center push and AWS’s $75B AI spending are tailwinds. The Daiwa Capital $300 price target isn’t out of reach if AWS growth accelerates. But legal risks linger—the disability lawsuit and NYC job cuts could trigger volatility. Think of it like a storm: the AI umbrella is big, but lightning strikes (lawsuits) can crack the foundation.

Actionable Trades: Calls for Aggressives, Puts for Cautious

For options traders, the AMZN20251219C235 (49K OI) is a sweet spot. At $235, AMZN would reclaim its 30D MA and test the $232.50 call wall. Entry: $2.50–$3.00 premium, with a target at $4.50 if AMZN breaks $240. Risk? A close below $222.80 (200D MA) would invalidate the setup.

Bearish? The AMZN20251219P225 put (15K OI) offers downside protection. If AMZN gaps below $228.69 (intraday low), this strike could catch a 5–7% rebound. For stock players, consider buying the dip near $221.06 (200D MA) with a tight stop below $217.41 (lower Bollinger Band).

Volatility on the Horizon

Amazon’s story is a tug-of-war: AI growth vs. labor costs, legal risks vs. cloud momentum. The options market leans bullish, but don’t ignore the $200–$220 put wall—it’s a warning sign. If AMZN holds above $228.94, the $235–$260 range is in play. If it breaks below $221.06, brace for a test of $215. Either way, this week’s options expirations (Dec 12 and 19) will tell us who’s in control.

Final Take: AMZN’s options and news paint a clear picture—bulls are stacking chips on the table, but bears have a lifeline. Play the trend, but keep a seatbelt. The AI train’s leaving the station, but the tracks aren’t perfectly smooth.