AMZN Options Signal Bullish Bias: Key Strikes and Block Trades Point to $235–$260 Breakout Potential

• AMZN trades at $227.69, up 0.35% with volume surging to 4.37M shares
• Call open interest dominates (2.8M vs. 1.99M puts), with heavy positioning at $235–$260 strikes
• Q3 earnings beat and AWS AI partnerships offset regulatory and energy concerns

The options market is whispering a breakout story for Amazon. While technicals hint at short-term caution, the call/put imbalance and block trades suggest smart money is positioning for a push above $235. Let’s break down why this could be a pivotal day for AMZN traders.Where Institutional Money Is Flowing: OTM Options and Block Trade Signals

The options chain tells a clear story: bulls are stacking up. For Friday’s expiration (Dec 12), the $235 call (AMZN20251212C235) leads with 45,148 open contracts, followed by the $260 call (AMZN20251219C260) at 60,999 OI for next week. This isn’t just noise—those strikes align with the 30D moving average ($234.30) and upper Bollinger Band ($248.71), making them psychological hurdles for the stock.

But here’s the twist: block trades are adding intrigue. A massive AMZN20251121P240 put block (830 contracts) and a AMZN20260116C250 call buy (500 contracts) hint at hedging or long-term positioning. The puts might signal caution around $240, while the calls imply conviction in a $250+ move by January. For retail traders, this duality means both a breakout and a pullback could be in play—keep an eye on the $225 support level (lower Bollinger Band at $214.74) as a critical floor.

News That Could Tilt the Scales: AI Wins vs. Regulatory Headwinds

Amazon’s recent headlines are a mixed bag. The AWS-Saks AI partnership is a direct win for cloud services, which could juice revenue streams. BofA’s $272 price target (up from Desjardins’ $218) reflects this optimism, especially with OpenAI models now on AWS. But the Trump administration’s antitrust uncertainty and energy consumption scrutiny add drag. Here’s the key: if AMZN holds above $225, the AI narrative could drown out regulatory noise. Below that, energy costs and political headwinds might force a retest of the 200D MA at $214.85.

Actionable Trades: Calls for the Bold, Puts for the Prudent

For options traders, the $235 call (AMZN20251212C235) expiring this Friday is a high-conviction play. With AMZN currently at $227.69, a close above $232 would trigger momentum. For longer-term positioning, the $260 call (AMZN20251219C260) offers leverage if the stock breaks out of its range.

Stock buyers should target an entry near $225 (current support at 221.06–222.80). A break above $229.67 (30D support/resistance) would validate the bullish case, with $235 as the first target. If the stock dips below $222.80, consider defensive puts like the $220 strike (AMZN20251219P220) for next week’s expiration.

Volatility on the Horizon: Balancing Risk and Reward

The coming days will test AMZN’s resolve. A breakout above $235 could reignite the 2025 rally, while a drop below $222.80 might force a reevaluation of the long-term range. The options market’s heavy call positioning suggests most expect a bullish resolution—but don’t ignore the $225 support. This is a stock at a crossroads: AI-driven optimism vs. regulatory and energy headwinds. For now, the data leans toward a push higher, but patience and tight stops will be your best allies.