Amazon.com closed at $249.67, up 0.12%.
Large options activity showed a dominant bullish lean, led by a $3.75 million put sale on long-dated out-of-the-money contracts. This signals premium collection and confidence that Amazon.com can hold above lower support levels. A much smaller $24,000 bearish put spread was also displayed, offering limited-risk downside exposure. Overall, the block flow suggests institutional sentiment remains constructive on Amazon.com, with selective hedging not strong enough to outweigh the broader bullish tone.
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Options Indicators
Amazon.com currently has an implied volatility of 35.43%, with an IV percentile of 46.61% and an IV/HV ratio of 1.29. Taken together, this points to a fairly neutral volatility environment: options are not especially cheap or expensive relative to their own recent history, while implied volatility still sits modestly above historical realized volatility, suggesting the market is pricing in somewhat higher forward movement expectations than what has recently been observed. The Call/Put volume ratio is 2.40.
Large Trades
A put sale worth $3.75 million was the largest displayed trade, with 1,400 contracts sold on the December 15, 2028 $220.00 put. With AMZN referenced at $249.67, this strike is out of the money, making the trade a moderately bullish income-style position that expresses confidence the stock can stay above $220.00 into expiration. Strategically, selling this long-dated out-of-the-money put suggests the trader is willing to collect premium while taking on downside assignment risk at a lower effective entry level, which is typically consistent with constructive longer-term sentiment rather than an outright bearish view.
A bearish put spread with a net debit of $24,000 was also among the displayed large trades, built by buying 1,595 December 18, 2026 $175.00 puts and selling 1,595 December 18, 2026 $170.00 puts. Both strikes are out of the money versus the $249.67 reference price, and the structure caps downside profit in exchange for lower upfront cost, making it a defined-risk bearish directional bet rather than an open-ended crash hedge. The modest net debit indicates a relatively inexpensive attempt to position for downside over time, but the capped structure also suggests the trader is targeting a specific bearish scenario instead of expressing maximum conviction in a severe breakdown.
Overall, the large-trade flow leans clearly bullish. The dominant feature is the much larger long-dated out-of-the-money put sale, which points to premium-selling appetite and confidence in AMZN holding above a lower support zone, while the bearish activity is present but comparatively small and expressed through limited-risk put buying. Taken together, the block flow suggests institutional sentiment remains constructive on AMZN, with selective hedging or downside speculation not strong enough to outweigh the broader bullish tone.
Strategy Reference
For traders seeking low assignment probability, selling a shorter-dated out-of-the-money put such as the $220.00 strike aligns with the dominant bullish flow, while a defined-risk put credit spread could be used to reduce margin requirements.
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