AMZN Options Signal Bullish Momentum: Key Strikes and Whale Moves to Watch for December 2025 Breakouts

• AMZN’s price dropped 2.1% to $227.47, but call open interest at strikes like $240 and $245 remains sky-high.
• Put/call ratio for open interest is 0.69, showing heavy bullish bias despite recent volatility.
• Block trades like AMZN20260116C250 (buy call) hint at long-term bullish positioning.

Here’s the takeaway: AMZN is caught in a tug-of-war between short-term profit-taking and long-term bullish bets. The stock’s 12% revenue beat and AI-driven automation news are fueling optimism, but today’s sharp drop has created a high-risk, high-reward setup. Let’s break it down.

Bullish Pressure at $240–$250, Bearish Caution Below $225

The options market is screaming about two key zones. For calls, the $240–$250 range is packed with open interest—29,586 contracts at $240 and 22,055 at $250 for Friday’s expiry. That’s not just noise; it’s a crowd betting on a rebound. Meanwhile, puts at $225 (10,649 OI) and $220 (6,146 OI) suggest traders are hedging against a drop to 200D support at $221.06.

But here’s the twist: A block trade of AMZN20260116C250 (500 contracts bought) signals big money is eyeing a 2026 rally. Contrast that with a $190 put block trade (4,282 OI), which seems like a hedge against extreme downside. The message? Bullish conviction is strong, but don’t ignore the risk of a pullback to test support.

Earnings, AI, and Antitrust: What’s Driving the Narrative?

Amazon’s Q3 beat and AI investments are the headline acts. The new warehouse robots and AWS RealTimeInsight service could juice margins and revenue—but the 7% post-earnings drop and FTC probe add friction. Retail investors love the AI hype, but institutional players might be wary of margin pressures in the retail segment. The key question: Can AWS and automation offset retail headwinds? Right now, the options market says “yes”—but the stock’s 2.1% drop today suggests some doubt.

Trade Ideas: Calls for Breakouts, Puts for Safety

For options traders, the AMZN20251205C240 call (expiring Friday) is a high-conviction play if the stock rebounds above $223.04 (30D support). If you want to stretch time, the AMZN20260116C250 call (bought in a block trade) could pay off if Amazon holds above $221.06. For downside protection, the AMZN20251205P225 put (10,646 OI) offers a hedge if the stock breaks below $226.80.

Stock traders should consider entry near $223.04 (resistance turning support) with a target at $240. If the price drops below $221.06, consider a short-term short or defensive puts. But watch the 200D MA at $214.75—it’s a psychological floor.Volatility on the Horizon

Amazon’s options activity and news flow paint a mixed picture. The stock is sitting on a knife edge: bullish technicals and options positioning clash with near-term margin concerns. My take? The $223.04–$240 range will be the battleground. If the bulls hold, we could see a retest of the 30D high at $234.33. If not, the $214.70–$215 Bollinger Band support becomes critical. Either way, December 2025 is shaping up to be a pivotal month for AMZN—just don’t go all-in without a plan.