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Options Activity Surges with Stock Up 11.55%: Blockbuster Earnings Spark Frenzied Call Buying
Amazon’s (AMZN) third quarter earnings blowout has ignited the options market, driving its stock up 11.55% ($25.74) to $248.60 as of 9:54 AM. But perhaps more intriguing than the rally itself is the action in today’s most traded contract: the Oct-31-25 250 Call, a zero-days-to-expiry option that’s seen a remarkable 17,870 contracts traded—a hefty 4.9% of all AMZN options volume today.
Big Moves and Aggressive Pricing: Contract Swings from $1.71 to $3.90
This 250 call opened at $3.57, peaked at $3.90, dipped to a low of $1.71, and last changed hands at $2.46—just a few cents below the session’s VWAP of $2.49. Compared to yesterday’s close of just $0.82, the spike in demand and price volatility stands out. As the stock trades a mere $1.40 below the strike, these contracts are tantalizingly close to being in the money by day’s end.
| Contract | Volume | % of Total Option Volume | VWAP ($) | Open | High | Low | Last | Prev Close |
|---|---|---|---|---|---|---|---|---|
| Oct-31-25 250 Call | 17,870 | 4.9% | 2.49 | 3.57 | 3.90 | 1.71 | 2.46 | 0.82 |
Order Flow Shows Slight Bullish Leaning, But No Overwhelming Consensus
The order flow breakdown shows 52.4% of these options were bought versus 47.6% sold. There’s a slight institutional bias (53% classified as large/pro trades), suggesting professional traders are driving much of today’s action, but there’s also notable retail participation (47%). With volume at 17,870 contracts—compared to open interest of 47,606 contracts (up 9,775 contracts from the prior day)—traders will be watching to see if new bullish bets are piling in or if some are locking in profits.
Earnings Catalysts and Underlying Stock Fundamentals Remain Robust
This burst of options activity didn’t appear out of nowhere. Amazon’s Q3 report stunned investors with a 13% jump in net sales to $180.2 billion and net income surging to $21.2 billion. AWS revenues rose a robust 20% YoY, while cash flow climbed 16% over the trailing year. Even with special legal and severance charges, Amazon’s core profitability metrics remain strong.
Risk-Reward: Is the Market Pricing In More Upside?
The aggressive trading in these short-term 250 calls implies a willingness to pay a rich premium for just a $1.40 move higher. The last price of $2.46 means buyers are wagering on a 0.56%+ pop in AMZN by the close, just to break even (ignoring fees). Historically, when a high-profile tech stock posts a double-digit move after earnings and options volume explodes, momentum often continues—though with considerable risk of reversals as euphoria fades.
Key Takeaway: Heavy Call Activity May Reflect Short-Term Bet on More Upside, but Premiums Remain High
For traders, the extraordinary volume and high premiums in today’s 250 calls highlight intense speculative interest around Amazon’s rally. The majority-bought order flow signals a bullish tilt, but with the option set to expire by day’s end, much of this activity may reflect attempts to capitalize on the post-earnings surge—or hedge against further moves. If AMZN can breach $250 today, call holders stand to win big. Otherwise, the rapid decay in value reminds us why short-term options remain a risky, high-stakes game.
Bottom line: While bullish option activity signals optimism, sharp premium jumps and the ticking clock to expiry mean that traders are walking a tightrope. Keep an eye on the closing bell—will AMZN’s momentum last just a little longer, or is the best of today’s action already behind us?
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