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Amazon, Tesla Attract Biggest Block Trades as Investors Brace for Volatility: Options Chatter
$Amazon (AMZN.US)$ and $Tesla (TSLA.US)$ attracted the biggest block trades in options so far Monday as investors laid down their investment strategies amid rising volatility.
An active seller collected an $83.6 million premium for unloading call options that give their holder the right to buy 2.1 million Amazon shares at $210 each in the next 39 days. That transaction is the biggest block trade among stock options as of 1:28 p.m. in New York Monday.
On Dec. 18, a block trade for the same call options with the same size was posted, with the buyer paying a $48.83 million premium. If those were the same call options sold in Monday’s block trade, the institutional investor behind it likely booked a $34.79 million gain as the price of those Amazon options climbed.
Shares of the e-commerce giant that’s also the dominant player in cloud services, were largely overlooked last year, posting a modest 5.2% advance that was dwarfed by $Alphabet-A (GOOGL.US)$’s 65% surge and $NVIDIA (NVDA.US)$’s 39% rally.
Amazon trailed all of its Magnificent Seven peers last year even as growth in Amazon Web Services accelerated, cementing its dominance in cloud services. The stock was named by JPMorgan analysts as its second best idea in 2026, behind Google parent Alphabet.
Last year’s laggard advanced 7.5% since the end of 2025, outpacing all its Magnificent Seven peers. While investors surveyed by JPMorgan expect Alphabet to be the biggest beneficiary of AI in 2026, Amazon is their mega cap favorite this year.
“Preference for AMZN over GOOG/L is stronger than we expected,” JPMorgan analysts including Doug Anmuth wrote in the note published Sunday, citing the results of their survey among investors.
Meanwhile, an active seller collected a $74.6 million premium for put options that give their holder the right to sell 408,000 $Tesla (TSLA.US)$ shares at $520 per share in 1,068 days. That transaction is the second biggest block trade so far.
That strike price is higher than the current stock price of $451.23, signaling the seller’s optimism that Tesla shares could extend its rally above $520, allowing the contract to expire worthless.
While those put options have just a 46% profit probability for the seller, at current prices, the breakeven is $337.35. That means Tesla shares will need to fall below that breakeven level for the seller to lose money on the trade.
Share your thoughts on Amazon, Tesla and the rest of the Magnificent Seven stocks in the comments section. Which of them do you think will outperform in 2026? Let your voice be heard by voting below. And if you want to read more options columns like this one on Google parent Alphabet, or this one on Intel, follow me here, where you can also find my earnings stories on some of the biggest stocks.
Disclaimer: Options trading entails significant risk and is not appropriate for all customers. It is important that investors read the Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Opening new options positions close to or on their expiration date comes with substantial risk of losses for reasons that include potential volatility of the underlying security and limited time to expiration. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period. Certain complex option strategies carry additional risk, including potential losses that may exceed the original investment amount. If applicable, supporting documentation for any claims will be furnished upon request.
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