Alphabet (GOOG) Options Signal $320 Call Contention: Bullish Breakout or Bearish Trap?

• GOOG surges 1.7% to $303.16, battling a bearish engulfing pattern and long-term bullish averages
• Put/Call ratio at 0.73 (calls dominate), with $320 calls and $290 puts as top open interest strikes
• Sanders Morris Harris just boosted its GOOG stake by 1,183.6% in Q3

Here’s the thing: GOOG’s options market is screaming about a $320 psychological battleground. With 17,101 contracts outstanding on the GOOG20251219C320 call (this Friday’s expiry), traders are clearly pricing in a sharp rebound. But the bearish engulfing candle and 29 RSI reading suggest caution. Let’s unpack what this means for your strategy.

The $320 Call Contention: A Battle of Bullish Bets and Bearish Reality

Options market participants are heavily loaded on the GOOG20251219C320 call, with over 17,000 contracts outstanding. This strike acts like a gravity well – if GOOG breaks above its intraday high of $304.63, those calls could ignite a short-covering rally. But don’t ignore the 9,690 contracts on the GOOG20251219P290 put either. That’s not just bearish sentiment; it’s a hedge against the $292.5 Bollinger Band support level.

The block trades tell an even more interesting story. While most are older (expiring in September/October 2025), the recent GOOG20250919C245 purchase shows institutional interest in lower-strike calls. Combine this with the 30D support zone at $284-285, and you’ve got a scenario where a pullback could attract bargain hunters – but only if the $300 level holds.

News Flow: Bearish Dip or Bullish Buying Opportunity?

That 3.14% pre-market drop? It’s more about sector rotation than Alphabet’s fundamentals. The stock’s AI-driven revenue streams remain intact, and Sanders Morris Harris just turned GOOG into its 25th largest holding. Here’s the twist: bearish traders are using the dip to add puts, while bulls see this as a test of $300 support. The real question is whether the $2.87 EPS beat in Q3 will outweigh macroeconomic jitters.

Actionable Trades: Calls for the Bold, Puts for the Prudent

For options players:

• Bullish Play: Buy GOOG20251219C320 calls if price breaks above $304.63. Target $320, stop below $300
• Bearish Hedge: Buy GOOG20251219P290 puts if price tests $300 support. Target $290, exit at breakeven

For stock traders:

• Entry: Consider buying GOOG near $300 if it holds above the lower Bollinger Band ($292.5)
• Target: 30D MA at $303.20 first, then push toward $315 resistance
• Stop: Below $292.5 triggers a reevaluation of the bullish case

Volatility on the Horizon: Will $320 Be a Launchpad or a Landmine?

The next 72 hours will tell us if GOOG’s options market is right. If the $320 calls expire worthless, we could see a sharp reversal. But if the stock holds $300 and rallies to $315, those calls become a gateway to longer-term bullish positioning. Either way, the 30D support/resistance range ($284-285) becomes critical if the bearish engulfing pattern plays out fully. This is one of those moments where you want to be both patient and prepared – because the next move could redefine GOOG’s 2025 trajectory.