Amazon.com, Inc. closed at $262.65, a decline of 0.94%.
A wave of decisive bullish flow swept through AMZN options, headlined by a $3.97 million in-the-money call purchase and a $1.26 million out-of-the-money put sale. The combination underscores robust conviction, with traders funding long-dated upside exposure while simultaneously collecting premium to underwrite moderate downside, leaving a net bullish difference of $5.22 million.
>>>Click to claim your commission-free cards before trading!
Options Indicators
AMZN’s implied volatility is 28.46%, and its IV percentile stands at 14.34%, which places current volatility in the low end of its recent range. In other words, options are cheaply priced, with volatility expectations relatively subdued. The IV/HV ratio of 0.46 further suggests implied volatility is running well below historical realized volatility, reinforcing the view that current option premiums are on the inexpensive side rather than inflated. The Call/Put volume ratio is 1.68, which aligns with the day’s upside-oriented activity.
Large Trades
A CALL buy worth $3.97 million was the largest displayed trade, with 1,275 contracts of the December 18, 2026 $250.0 call purchased. With AMZN referenced at $262.65, the strike is in the money, which makes this a clearly bullish directional position with meaningful premium committed for long-dated upside exposure. The buyer is effectively paying up for sustained participation in further gains, suggesting confidence that AMZN can extend higher over a longer time horizon rather than expressing a short-term tactical view.
A PUT sale worth $1.26 million was the other displayed large trade, consisting of 4,822 contracts of the October 2, 2026 $240.0 put sold. Since the strike sits out of the money versus the $262.65 reference price, this is also a bullish stance, most consistent with premium collection and a willingness to own stock lower if assigned. Strategically, the seller appears comfortable underwriting downside to the $240 level in exchange for income, which reinforces the idea of constructive sentiment rather than concern about a sharp decline.
Overall, large-trade sentiment in AMZN was decisively bullish, with total bullish flow of $5.22 million versus just $0.00 million of bearish flow, leaving a net difference of $5.22 million to the upside. The directional judgment is clearly bullish: the biggest activity combined a long in-the-money call purchase with a sizable out-of-the-money put sale, a pairing that reflects both upside participation and confidence in downside support. Even with a small bearish call sale elsewhere in the tape, the dominant large-trade behavior points to traders leaning positively on AMZN and expressing willingness to fund or defend bullish exposure rather than position for weakness.
Strategy Reference
For traders seeking to replicate the bullish income approach with a lower assignment probability, selling the October 2026 $220 put offers a wider buffer while still capturing elevated premium, or a bull call spread using the current $250-$280 strikes can define risk without requiring heavy margin.
Comments