Analyzing AMZN Key Levels & Options After Stock Upgrade

Core Viewpoint - Amazon's shares have declined by 4% this month, but Wells Fargo has upgraded the stock to overweight and raised its price target to $280 from $245, indicating increased confidence in revenue acceleration from Amazon Web Services [1][2]. Company Performance - Amazon's stock is currently underperforming compared to the S&P 500 and the consumer discretionary sector, ranking as the second worst among the "magnificent seven" tech stocks, only ahead of Apple [3][4]. Self-Driving Cars Initiative - Amazon's self-driving car unit, Zuks, is seeking approval for 2,500 fully driverless robo-taxis, having already launched a pilot service in Las Vegas. Zuks aims to build dedicated robo-taxis from scratch, without any human driving capabilities [4][5]. Technical Analysis - Amazon's stock has shown a series of higher lows but has faced repeated failures at a resistance level near $236. The stock has recently fallen below key moving averages, with current support levels around $216 and $206 [7][8]. Options Activity - Options trading for Amazon has seen over 726,000 contracts today, with 77% being calls and 23% puts. The expected price movement for the next 23 days is around 14.8%, with a range from $206 to $235 [11][12]. Notable Trades - A significant trade involved the purchase of approximately 4,900 call options at a $270 strike price while selling about 9,800 call options at a $300 strike price, indicating a bullish outlook but requiring a 23% move to break even [13][14].