AMZN Options Signal Bullish Momentum: Focus on $250 Calls and AI-Driven Catalysts as Volatility Builds

• Options data shows a 0.74 put/call open interest ratio, favoring bullish positioning with heavy call volume at $250 and $260 strikes.
• Block trades reveal a $245 call battle: 2000 contracts swapped hands at steep discounts, hinting at strategic positioning.
• Technical setup is textbook bullish: RSI near overbought (82.9), Bollinger Bands squeezing toward a breakout, and MACD surging above signal line.

Here’s the deal: Amazon’s options market isn’t just bullish—it’s aggressively bullish. With calls dominating open interest and block trades heating up around key strikes, the data screams that institutional players are pricing in a near-term breakout. Let’s break down why this could be your most compelling trade setup of the year.

Bullish Sentiment Locked in at $250–$260 Strikes

Looking at the options chain, next Friday’s $250 call (AMZN20260116C250) is the most watched strike with 64,372 open contracts—nearly double the $260 call’s 40,891. This isn’t random. High open interest at these levels means a critical mass of traders expects Amazon to punch through its 52-week high of $246.92 and test these strikes. The block trades at $245 (AMZN20260116C245) add another layer: big players are hedging or accumulating calls at a discount, which often precedes sharp moves.

But don’t ignore the risks. The put/call ratio isn’t extreme, but the top puts (like $225 and $230) show enough open interest to suggest some hedging activity. If Amazon stumbles below its 30-day support at $232.28, that could trigger a short-term selloff. However, the technicals—RSI at 82.9, MACD histogram surging—indicate this is more about positioning for a breakout than fear of a crash.

AI and AWS: Why Analysts Are Rewriting AMZN’s Script

The news flow? Explosive. Evercore ISI just slapped a $335 price target on Amazon, betting big on Rufus—the AI shopping assistant that could add $4B in ad revenue by 2028. Bank of America’s highlighting AWS’s new OCC security clearance as a "catalyst for institutional trust." These aren’t just numbers; they’re real-world drivers that could push AMZN’s TAM higher and justify the call-heavy options bets.

Here’s the kicker: The market isn’t just pricing in AI hype. It’s pricing in execution. AWS’s logistics edge, combined with EU regulatory tailwinds, means Amazon’s moat is widening. That’s why the $300 call (AMZN20260116C300) has 34,178 open contracts—it’s not about short-term noise anymore. It’s about a re-rating.

Actionable Trade Ideas: Calls, Spreads, and Precision Entries

For options traders: Buy AMZN20260116C250 at current premiums (use today’s data to estimate). With the stock trading at $246.35, this call gives you leverage if Amazon breaks above its intraday high. Alternatively, a bull call spread using AMZN20260116C250 and AMZN20260116C260 could cap risk while still capturing a $5–$7 move.

Stock traders: Consider entries near $242.25 (intraday low) if the 200-day Bollinger Band at $218.11 holds. A clean break above $247.50—where 14,098 calls are waiting—could send the stock toward $255. Your first target: $255. Your stop: below $232.28.

Volatility on the Horizon: Positioning for the Next Leg

Amazon isn’t just a stock—it’s a bellwether for AI’s commercial potential. With options data and analyst reports aligning on a bullish thesis, the next 7–10 days could be pivotal. The $250 call expiration (Jan 16) is a natural catalyst. If Amazon holds above its 30-day moving average ($230.80) and clears $247.50, the $260–$270 strikes could become the new battleground.

This isn’t a gamble. It’s a calculated play on a company rewriting its own playbook. The question isn’t whether Amazon can go higher—it’s whether you’re ready when it does.