Amazon Sees Record-Breaking Options Bet as Traders Eye $295 Target

A large bullish options trade worth nearly $15 million has been placed on Amazon (AMZN.US) shares, indicating potential upside for the company. The trade involved buying 25,000 AMZN Oct. 30 $260/$295 bull call spreads at a net premium of roughly $14.8 million. This means that if AMZN reaches or exceeds $266 by October 30, the trader will break even, but if it reaches or exceeds $295, they will make a profit.

The trade is betting on further upside over the next five weeks, with shares potentially moving toward $295. Amazon's growth in AI chips and its cloud computing business are key drivers of this bullish sentiment. The company has been scaling up its in-house AI chips, Trainium and Graviton, which have surpassed a combined $10 billion annual revenue run rate.

Microsoft (MSFT.US) also saw significant options activity with roughly 14,880 Oct. 30 $525/$600 call spreads worth over $10 million in premium. This suggests that traders are positioning for further near-term upside in Big Tech.