Amazon Bulls Bet Big on Rebound Ahead of Earnings
Amazon's stock price has been under pressure in recent days due to rising oil prices and Treasury yields, but large traders are placing bullish bets on a rebound. With AMZN trading around $249, 15,000 Nov. 20 $265/$325 bull call spreads crossed the tape on Tuesday, carrying a net cost of roughly $13.7 million and a breakeven near $274 at expiration.
This is not the first time large traders have placed bullish bets on Amazon's stock price in recent days. A total of 57,500 bull call spreads and more than $41 million in net premium are concentrated in the Nov. 20 expiration, making the buildup of bullish positioning increasingly notable. The timing also covers Amazon’s next earnings season, giving investors another opportunity to assess AWS growth, AI demand and returns on the company’s heavy Capex spending.
Amazon's AI investment story is complex, with the company both buying and monetizing AI infrastructure through its AWS platform. Strong AI demand can continue supporting AWS revenue growth, which could lead to improving free cash flow and returns on investment for Amazon if Capex growth moderates while AI-related revenue keeps expanding.