Option Focus | Amazon.com's $1.28 Million Sale of 2028 $105 Puts Signals Deep Conviction, While $270 Call Buys Add to a Broadly Bullish Institutional Tone

Option Witch
Sep 23

Amazon.com closed at 254.98 USD, down 1.34%.

Despite the daily decline, large options flow revealed a distinctly bullish institutional posture. A dominant $1.28 million put sale at the 105.0 strike for December 2028 anchored the session, signaling deep confidence far below the current price. Reinforcing that tone, a $19,200 call purchase at the 270.0 strike for September 2026 added upside conviction. Together, the blocks suggest traders view Amazon.com's path as stable-to-higher, using premium collection on distant puts while buying leverage on further appreciation.

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Options Indicators

Amazon.com currently has an implied volatility of 34.70%, with an IV percentile of 41.04%, placing its volatility backdrop in a neutral range rather than an unusually cheap or expensive one. At the same time, the IV/HV ratio of 1.31 shows implied volatility is running above historical volatility, suggesting option premiums are carrying a moderate forward-looking volatility premium, but not to an extreme degree.

The Call/Put volume ratio is 2.85.

Large Trades

A put sale worth $1.28 million was the dominant large trade, with 6,050 contracts sold at the 105.0 strike expiring on December 15, 2028. With AMZN referenced at $254.98, this put sits deeply out of the money, making it a clearly bullish cash-secured-style expression or a premium-collection trade that benefits if the stock remains well above that strike over time. The positioning suggests the trader is comfortable taking on downside assignment risk only at a much lower level, while using the far-out strike to harvest option premium in exchange for underwriting tail risk.

A call purchase worth $19,200 was the other displayed large trade, with 1,200 contracts bought at the 270.0 strike expiring on September 25, 2026. This call is out of the money versus the current stock reference, so the buyer is expressing an upside directional view and paying premium for a move above the strike over the option’s life. Strategically, this is a straightforward bullish wager on further appreciation in AMZN, with defined risk limited to the premium paid and upside leverage if the stock extends higher.

Overall, the large-trade flow points to a clearly bullish institutional tone in AMZN. The standout feature is the heavy selling of far-out-of-the-money puts, which typically reflects confidence that the stock can stay comfortably above lower support zones while generating income, and that was reinforced by additional upside call buying rather than defensive put accumulation. Taken together, the block activity suggests market participants are leaning constructive on AMZN and are positioning for stability to strength rather than meaningful downside pressure.

Strategy Reference

For a defined-risk bullish structure with lower margin than a naked put sale, a bull put spread selling the 200.0 strike and buying the 180.0 strike in a longer-dated expiration offers a high probability of expiring worthless while capping assignment risk.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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