AMZN Options Signal Bullish Bias: Target $240+ with Caution Below $220 as Expansion Drives Sentiment

• AMZN trades at $229.88, up 0.86% with volume surging to 19.4M shares
• Call open interest dominates (2.85M vs. 2.02M puts), with heavy positioning at $235–$240 calls
• Block trades hint at big money bets on $250+ move by January 2026

Here’s the deal: AMZN’s options market is screaming bullish, but technicals show a tug-of-war between short-term bears and long-term range-bound traders. The stock’s 0.86% intraday gain masks a deeper story—options traders are pricing in a potential $240+ breakout, while technical indicators warn of a possible pullback if support breaks. Let’s break it down.

Bullish Call Overload at $235–$240, But Puts Watch $220

Take a look at the options chain: next Friday’s $235 call (AMZN20251219C235) has 45,462 open contracts, and the $240 call (AMZN20251219C240) has 52,813. That’s not just noise—it’s a vote of confidence. The put/call ratio of 0.707 (calls > puts) reinforces this bullish bias. But don’t ignore the puts: $220 (AMZN20251219P220) has 20,924 open contracts, signaling a key support level to watch.

Block trades add intrigue. The AMZN20260116C250 call (buy call, 500 contracts) suggests big players are eyeing a $250+ move by January. Meanwhile, the AMZN20251121P240 put (830 contracts) hints at hedging activity for near-term volatility. If the stock breaks above $232.42 (today’s high), these call-heavy positions could ignite a short-covering rally.

News Flow: Expansion Fuels Optimism, Tax Risks Lurk

Amazon’s grocery delivery expansion and India AI push are fueling the bullish narrative. The $35B India investment alone justifies a higher multiple for AWS and e-commerce growth. But the EUR 723M Italian tax settlement adds a wrinkle—regulatory risks never fully disappear. The key question: Will the market treat these as one-off costs or a recurring theme? Right now, options traders seem to assume the former, but keep an eye on the $220 support level if tax-related jitters resurface.

Trade Ideas: Calls for Breakouts, Puts for Protection

For options: Buy the AMZN20251219C235 call if AMZN closes above $232.42 today. Target $240–$245 by next Friday. For a longer play, the AMZN20260116C250 call offers leverage if AWS growth accelerates.

For stock: Consider entry near $229.88 if AMZN holds above $228.47 (intraday low). Target $235 first, then $240. If it breaks below $228.47, exit or hedge with the AMZN20251219P220 put.

Volatility on the Horizon: Balance Boldness with Caution

AMZN’s story is a classic tug-of-war: bullish fundamentals vs. short-term technical fragility. The options market is pricing in a $240+ move, but the MACD (-0.715) and RSI (58.04) suggest momentum could stall. Play this like a chess game—aggressively target the $235–$240 range, but keep a tight stop below $228.47. If the stock holds, the next 30 days could be a golden opportunity for call buyers. If it cracks, the puts at $220 might become your lifeline.

Bottom line: AMZN’s options activity screams “bullish,” but don’t ignore the short-term bearish trend. Position yourself to capitalize on the breakout, but keep a safety net in place. The grocery and AI plays are real—but so are the risks.