Alphabet (GOOG) Options Signal $350 Bullish Bias: Trade Setup for AI-Driven Breakout

• Alphabet’s stock price hits $332.1, up 0.9% with RSI at 86.26—overbought but supported by AI partnership news.
• Options data shows 26,492 open interest at the $350 call strike (this Friday’s expiry)—a key resistance-turned-target level.
• A $5.8M block trade for 3,500 March 20, 2026 $340 calls hints at institutional bullishness beyond short-term volatility.

Here’s the core insight: Alphabet’s options market is pricing in a high-probability upside breakout, with heavy call buying at $350 and $340 strikes aligning with recent news of a $4 trillion valuation and AI-driven growth. The stock’s technicals—short-term bullish Kline patterns, a surging MACD (5.45 vs. 4.79 signal line), and RSI near overbought territory—suggest momentum traders are leaning in. But the real signal is the put/call ratio for open interest at 0.807, meaning calls dominate by 24%—a clear tilt toward upside bets.

Bullish options positioning and block trade whispers

Let’s break down the options data. This Friday’s top OTM calls are clustered between $335 and $360, with the $350 strike leading at 26,492 open interest. That’s not just noise—it’s a liquidity magnet. If GOOG breaks above its intraday high of $334.44, the $350 strike becomes a critical psychological level. Traders are hedging or speculating on a run toward $360, where the next 30D resistance (314.84) is already 15% below current levels.

On the put side, the $320 strike (13,566 OI) is the most watched for near-term downside risk. But the put/call imbalance tells us bears aren’t in control. The block trade for 3,500 GOOG20260320C340 calls (March 20 expiry) adds another layer: big players are locking in exposure for a potential 10% move higher, betting on sustained momentum from Alphabet’s AI and cloud wins.

News flow: AI partnerships and legal clarity fuel the bullish case

Alphabet’s recent headlines are a goldmine for bulls. The $4 trillion valuation milestone, driven by the Apple AI partnership and cloud growth, isn’t just a number—it’s a validation of Gemini’s market potential. The EU’s regulatory softness and legal wins (no forced breakup, no strict digital rules) remove overhangs that once capped the stock. Meanwhile, the AI-powered retail tools with Walmart and Shopify create new revenue streams, making the $340+ price target more plausible.

But here’s the catch: RSI at 86.26 means the stock is technically overbought. A pullback to the 30D moving average ($315.42) could test short-term resolve. However, the Bollinger Bands show the price is far above the middle band ($313.84), indicating strong conviction in the upward trend.

Actionable trade ideas: Calls for the breakout, stock for the grind

For options traders: Buy GOOG20260116C350 (this Friday’s expiry) if GOOG closes above $334.44. The $350 strike is a liquidity sweet spot, and a $332.1 entry today gives you a 3.6% buffer. If you want a longer play, GOOG20260123C340 (next Friday’s expiry) offers a cheaper premium with a 2.7% buffer to the current price.

For stock traders: Consider entry near $332.1 if the price holds above the 30D support at $314.22. Target $340 first (3.9% gain), then $350 if the AI narrative holds. A stop-loss below $325.51 (intraday low) would protect against a surprise selloff.

Bearish hedge: If you’re wary of overbought conditions, sell GOOG20260116P320 puts. The 13,566 OI at this strike means there’s liquidity to exit if the stock corrects. But given the news flow and block trade activity, this feels like a defensive play more than a core bet.Volatility on the horizon

Alphabet’s options market is pricing in a high-conviction AI-driven rally, but the path isn’t without risks. The EU’s Wiz acquisition decision (Feb 10) and potential AI ad revenue cannibalization could create volatility. For now, though, the data tells a clear story: call options dominate, block trades signal long-term bullishness, and technicals are primed for a breakout. If you’re in, ride the $350 call wave. If you’re out, watch the $320 put level for a potential short-term reversal. Either way, this is a stock—and options setup—that won’t stay quiet for long.