Amazon.com Inc. closed at USD 251.19, rising 2.13%.

Despite the daily gain, displayed options flow showed a strongly bearish tilt. The standout was a $6.94 million double-long put spread, followed by a $3.38 million outright in-the-money put purchase. Both trades point to substantial downside hedging or speculative positioning, even though AMZN’s implied volatility remains relatively cheap at 31.92%.

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Options Indicators

AMZN’s implied volatility is 31.92%, and with an IV percentile of 21.91%, current option pricing sits in the lower end of its historical range. In other words, volatility is on the low side and options appear relatively cheap rather than expensive. The IV/HV ratio of 1.27 also suggests implied volatility is running modestly above realized volatility, indicating the market is assigning some premium to forward uncertainty, but overall the pricing backdrop remains relatively inexpensive. The Call/Put volume ratio is 2.08.

Large Trades

A bearish double-long put spread with a net debit of $6.94 million stood out as the largest displayed trade, consisting of long 280.0 puts and long 275.0 puts expiring on 2026-09-18. Both strikes are in the money versus the $251.19 reference stock price, and because the structure includes two bought puts, it is best read as a directional downside bet with added convexity rather than a premium-collection trade. The trader paid a substantial debit to gain bearish exposure across nearby in-the-money strikes, signaling expectations for a sizable move lower and a willingness to spend premium up front for that protection and leverage.

A single-leg put buy worth $3.38 million was the other key displayed trade, involving the purchase of 270.0 puts expiring on 2026-09-18. With the strike already in the money relative to the $251.19 stock reference, this was a straightforward bearish position that gains from further weakness in AMZN while also offering downside protection. The choice to buy puts outright, rather than sell premium, suggests urgency and conviction on downside risk rather than a neutral income-oriented stance.

Overall, the large-trade flow points clearly bearish. The dominant displayed activity was concentrated in aggressive put buying, especially in-the-money downside structures and outright long puts, which typically reflect expectations for further stock weakness and a desire for leveraged downside exposure or hedging against a meaningful decline. Even across the broader bulk-order picture, the balance of activity leans toward protective or speculative downside positioning rather than bullish accumulation, reinforcing a negative near-to-medium-term options sentiment on AMZN.

Strategy Reference

Given the low IV percentile, sellers may prefer out-of-the-money call spreads such as the 270/275 short call vertical for defined risk, or the 220 put as a cash-secured strike for lower assignment probability if taking a contrarian view against the bearish flow.