Alphabet (GOOG) Options Signal $320 Bullish Bias: Here’s How to Position for AI-Driven Breakout

• Alphabet’s $4.75B Intersect Power acquisition targets AI data center energy bottlenecks
• Options data shows 12,458 open calls at $320 vs 8,706 puts at $280—bullish imbalance ahead of key resistance
• Technical setup: Short-term bearish RSI (44.5) vs long-term bullish 200D MA ($213) suggests volatility ahead

The options market and technicals are painting a clear picture: upside potential is the dominant theme for GOOG today. With the stock trading at $310.18—just $10 below the $320 call-heavy strike zone—investors are pricing in a breakout scenario fueled by Alphabet’s AI infrastructure bets. Let’s break down why this $320 level is critical and how to play it.

Bullish Imbalance at $320 and Strategic Block Trades

The options chain is screaming one thing: call buyers are stacking up at $320. With 12,458 open calls at this strike (expiring Dec 26) and 13,537 next week, it’s the most contested level in the market. Puts, meanwhile, peak at $280 with just 8,706 open. This 1.43x call/put ratio suggests institutional players are hedging for a rally, not a crash.

But here’s the twist: block trades from September and October (like the 800-lot GOOG20250919C235 and GOOG20251003C250) hint at whale activity building ahead of key support/resistance zones. These trades, combined with the current $320 call frenzy, imply a strategic push to test the 30D support/resistance range ($319.90–$320.84). If the stock breaks above this, the $320 calls could see explosive gamma-driven gains.

News Flow: AI Infrastructure Wins Outweigh Short-Term Hiccups

Alphabet’s recent headlines are a mixed bag, but the AI infrastructure narrative dominates. The $4.75B Intersect Power acquisition isn’t just a headline—it’s a strategic move to secure energy for AI data centers, directly addressing a bottleneck that’s been holding back growth. Pair that with the $10B Palo Alto Networks security deal and the Gemini 3 Flash AI launch, and you’ve got a long-term bullish story.

Yes, the Waymo robotaxi pause and SerpApi lawsuit add noise, but these are short-term operational risks. The $2.87/share earnings beat and $73.6B trailing free cash flow show Alphabet’s core business remains robust. Analysts are upgrading price targets to $305–$330, and the options market is pricing in a $320+ future.

Actionable Trade Ideas: Calls, Stock, and Risk Management

For options traders, the GOOG20260102C320 ($320 call expiring Jan 2) is the most compelling play. With 1541 open contracts and the stock hovering near $310, a break above $319.90 support could trigger a parabolic move. If you’re bullish but cautious, consider a risk-reversal strategy: buy the $320 call and sell the $290 put (GOOG20260102P290) to offset premium costs.

For stock buyers, the ideal entry is $310–$311 with a hard stop below $306.60 (today’s intraday low). A successful breakout above $320 would target $325–$330, where the 30D moving average and Bollinger Band upper ($328.86) align. If the stock stalls, the 200D MA at $213 remains a long-term floor.

Volatility on the Horizon: Balancing Gamma and Downturn Risks

The next 72 hours will be critical. If GOOG closes above $319.90 Friday, the $320 call buyers will likely trigger a gamma squeeze. But don’t ignore the puts: the $280 strike has 8,706 open contracts, meaning a sharp drop below $300 could see panic selling. Keep an eye on the RSI (currently at 44.5)—a rebound above 50 would confirm bullish momentum.

In the end, Alphabet’s AI-driven energy and cloud bets are too big to ignore. The options market is pricing in a $320+ future, and the fundamentals are lining up. But as always, volatility is a double-edged sword—trade with a plan and respect the short-term bearish trend until the breakouts confirm.