Usman Salis
Amazon kicked off the session with a bang, surging over 5% intraday after unveiling a massive $38 billion strategic deal with OpenAI. The partnership positions Amazon as a major force in the AI infrastructure race, putting it toe-to-toe with Microsoft and Google. But beyond the headline buzz, the options market is telling an interesting story—one that suggests this rally might have some staying power.
What the Chart Shows
Options data from BullflowIO shows positive gamma exposure, suggesting the market expects stability around current levels rather than wild swings.
The 5-minute chart and options data paint a clear picture of event-driven momentum meeting market structure:
- Sharp breakout: AMZN rocketed from $244 to $256.50 in a matter of minutes, fueled by heavy institutional buying
- Volume surge: A massive green volume spike confirmed serious participation, not just retail FOMO
- Tight consolidation: After the initial pop, the stock settled into a narrow range between $255–$257
- Gamma support: The $250 strike holds 67.8M in positive gamma—acting as a floor against pullbacks
- Resistance zone: The $260 strike shows 64.3M gamma, likely the next hurdle where momentum could stall
Why the OpenAI Deal Matters
The $38 billion partnership is one of Amazon's biggest AI bets yet. It's expected to integrate OpenAI's models deep into AWS and Amazon's e-commerce platform—think smarter product search, better personalization, and next-level ad targeting. This puts Amazon squarely in competition with Microsoft's OpenAI relationship and Google's Gemini push. For investors, it signals Amazon's intent to dominate the AI-powered cloud market and could drive long-term earnings across multiple segments.
Usman Salis
