AMZN Options Signal Bullish Momentum: Key Call Strikes and Block Trades Point to $235–$240 Breakout Potential

• AMZN trades at $231.28, down 0.34% but clinging to a long-term bullish trend
• Call open interest dominates at $235 and $240 strikes, with a put/call ratio of 0.74 (bullish bias)
• Block trades show big money buying $250 calls and $230 puts ahead of Jan 16 expiration

Here’s the deal: AMZN’s options market is screaming upside potential right now. Call open interest is stacking up at key resistance levels, while block trades suggest institutional players are hedging or scaling up positions. Let’s break down what this means for traders and how to position for the coming week.

Bullish Imbalance in Call Open Interest and Whale Moves

AMZN’s options chain is skewed bullish, with the top OTM calls concentrated at $235 (OI: 24,669) and $240 (OI: 20,740) for Friday’s expiration. That’s not random—it’s a sign of heavy money flowing into upside protection or speculative plays. The next Friday’s $235 and $240 calls also hold strong open interest, showing sustained conviction beyond the immediate expiry.

But here’s the twist: block trades like AMZN20260116C250 (500 contracts bought at $960 each) and AMZN20260116P230 (385 puts traded) tell a bigger story. These moves suggest big players are either hedging against a rally or preparing to capitalize on a breakout above $235. The $250 call strike, in particular, lines up with analysts’ $296.12 average price target—so don’t be surprised if we see smart money stacking deeper-dated calls as volatility builds.

News Flow: AI Growth vs. Near-Term Headwinds

Amazon’s AI and AWS bets are firing on all cylinders. A $3 trillion valuation isn’t just hype—AWS grew 20% YoY in late 2025, and analysts project 30% growth in 2026. But the Italian drone pause and rising diesel costs are real risks. The market’s pricing in optimism for AWS, though: Loop Capital just bumped its target to $360, and ETFs hold 72% of AMZN shares institutionally. Retail investors might be underestimating how much AWS profit margins can offset logistics pain.

Actionable Trade Ideas for AMZN

For options traders:

• This Friday: Buy AMZN20260102C235 ($235 calls) if AMZN breaks above $232.35. Target a 10–15% move to $245–$250 before expiry.
• Next Friday: Buy AMZN20260109C240 if the stock holds above $229.02 (middle Bollinger Band). This plays the 30D/200D moving average crossover.

For stock:

• Entry: Buy AMZN near $229.02 (middle Bollinger Band) with a stop-loss at $222.40 (30D support).
• Target: $236.72 (upper Bollinger Band) if the 30D MA (228.31) holds.

Volatility on the Horizon

AMZN isn’t just a tech stock—it’s a barometer for AI-driven growth. The options data and block trades point to a critical week: a break above $235 could trigger a rally toward $250+, while a drop below $222.40 would test long-term bullish conviction. With analysts upgrading targets and AWS momentum intact, this is a stock where patience pays off. But don’t ignore the diesel cost risks—set tight stops and watch that $229.02 level like it’s your last coffee order.