Peter Smith
Amazon's stock enjoyed a strong rally Monday as traders demonstrated renewed confidence following recent market volatility. The tech giant saw an impressive 2.7% intraday gain, driven by significant institutional interest in short-term call options, with over $13 million poured into near-dated calls — one of the strongest bullish flows for the stock this month.
Bullish Momentum Takes Hold
Amazon shares climbed on Monday as traders loaded up on short-term call options, signaling growing optimism after a turbulent previous session. Quant Data reported that AMZN saw heavy call flow exceeding $13 million in single-leg contracts with 90 days or less to expiration.
The surge in call activity, combined with the sharp intraday rebound, suggests institutional traders are positioning for continued upside.
What the Options Data Reveals
The chart shows a clear divergence between calls and puts:
- Call premiums surged to approximately $13.8 million
- Put volume remained minimal at around $633,000
- The underlying share price rose steadily, closing near $222.38
The correlation between rising call premiums and the stock's price movement reflects persistent bullish sentiment throughout the trading day. From around 9:40 AM, call premiums climbed rapidly, reaching nearly $15 million by midday before stabilizing into the close. Meanwhile, put activity stayed flat, indicating minimal bearish conviction. The consistent inflows into near-term call contracts suggest speculative yet confident positioning by short-term traders—behavior typically seen when institutional desks anticipate a sustained recovery in large-cap tech names.
Fundamental Tailwinds Supporting the Rally
Amazon's recent strength reflects a broader rebound in mega-cap tech and renewed optimism around Q4 earnings. Investors are focused on expanding AWS profitability, steady advertising revenue growth, and improved operational efficiency from prior cost-cutting measures. These factors, combined with easing Treasury yields, have reinforced appetite for high-beta tech exposure—a sentiment clearly visible in Monday's options flow.
Can the Bulls Keep Control?
With AMZN trading around $222–$223, the next key resistance sits near $230–$235, where previous consolidation occurred in early October. Sustained call-side pressure above this range would confirm continued bullish momentum, though a decline in call volume or flattening premiums could signal short-term exhaustion. For now, the $13 million call imbalance represents one of the strongest single-day bullish flows for Amazon this month, indicating traders are betting aggressively on further upside heading into the week.
Peter Smith
