Alphabet (GOOG) Call Options Surge at $320–$322.50: A Bullish Breakout Play as AI and Cloud Momentum Ignite

• Alphabet’s Q3 earnings and AI advancements drove a 30% cloud segment growth, with analysts raising price targets to $350.
• Options data shows heavy call open interest at $320 and $322.50, while the put/call ratio (0.75) signals strong bullish sentiment.
• Berkshire Hathaway’s $4B investment and a $4.75B acquisition of Intersect highlight institutional confidence in long-term AI/cloud growth.

Here’s the core insight: GOOG is primed for an upside breakout. The stock’s current price ($314.60) sits just above its 30-day support level ($314.35), while options activity and technicals align with a bullish bias. With AI-driven revenue streams and strategic infrastructure bets, the risk-reward profile tilts sharply in favor of buyers.

Bullish Call OI Clusters and Whale Moves Signal Target Levels

The options chain tells a clear story: traders are piling into calls at $320 and $322.50 (expiring Jan 2, 2026), with open interest of 16,084 and 14,374 contracts, respectively. These strikes act as a "gravity well"—if GOOG breaks above its intraday high of $315.39, those calls could see explosive demand. Conversely, put open interest is muted, with the largest OTM puts at $305 and $302.50, suggesting limited downside conviction.

Block trades add intrigue. A $1.14M purchase of GOOG20250919C235 and GOOG20251003C250 (both expiring in late 2025) hints at institutional positioning for a multi-month rally. These moves, combined with the OTM call dominance, suggest smart money is hedging against a post-earnings pop or AI-driven re-rating.

News Flow Fuels the Bull Case—But Watch for Overbought Risks

Alphabet’s recent news is a goldmine for bulls. The $4.75B Intersect acquisition bolsters cloud infrastructure, while the Gemini AI partnership with Samsung cements its AI leadership. Q3 earnings (beating estimates by 26%) and Berkshire’s $4B stake further validate its growth story. Analysts now see a $350 price target—a 11% upside from current levels.

However, the RSI at 46.46 and MACD histogram (-1.05) suggest the stock isn’t overbought yet. But if GOOG closes above $315.39 (intraday high), watch for a test of the Bollinger Upper Band at $325.26. A break above that could trigger a wave of stop-loss orders and accelerate the move toward $320+ calls.

Actionable Trade Ideas: Calls for Leverage, Stock for Core Position

For options traders: Buy GOOG20260102C320 (Jan 2, $320 call) if GOOG holds above $314.35 support. The strike is just 1.7% out of the money but sits directly under heavy OI. A $315.39 close today would give this call a 15%+ pop. Alternatively, a bull call spread using GOOG20260102C320 and GOOG20260102C325 (OI: 11,115) caps risk while leveraging the $320–$325 OI sweet spot.

For stock buyers: Consider entry near $314.35 (30-day support) with a target at $320. A break above $315.39 validates the bullish case, while a drop below $312.20 (intraday low) would force a reevaluation. Use the 200-day MA ($217.66) as a long-term floor—this stock isn’t going back there anytime soon.

Bullish Breakout on the Horizon

The convergence of options positioning, technicals, and news points to a high-probability upside move. With AI and cloud growth accelerating, and institutional money flowing in, GOOG’s 2026 trajectory looks increasingly bullish. Traders should focus on the $320–$325 strikes as both a target and a liquidity magnet. As always, keep an eye on the Bollinger Upper Band—once it’s breached, the rally could gain serious momentum.