Alphabet (GOOG) Options Signal $350 Bullish Target: Here’s How to Play the AI-Driven Breakout

• GOOG trades at $330.76, up 0.5% with a 30D MA at $315.42 and a 200D MA at $223.00
• Call open interest dominates at $350 (26,492 contracts) and $340 (14,864), while puts cluster at $320 (13,566) and $305 (10,892)
• Institutional upgrades, Apple’s AI partnership, and a $4T market cap milestone fuel near-term optimism

The options market is whispering a breakout story for GOOG—and it’s not just noise. With call open interest surging at the $350 strike and technical indicators pointing higher, the stock is primed for a push toward key resistance levels. But here’s the catch: while the AI-driven narrative is strong, regulatory risks and a Zacks downgrade add a layer of caution. Let’s break it down.Bullish Sentiment Locked in at $350, but Puts Signal Caution

The options data tells a clear story: traders are betting on a short-term rally. This Friday’s $350 call (GOOG20260116C350) has 26,492 open contracts—the highest of any strike—while the $340 call (GOOG20260116C340) adds another 14,864. That’s not just noise; it’s a vote of confidence in Alphabet’s AI-driven momentum. The put/call ratio of 0.81 (calls > puts) reinforces the bullish tilt, but don’t ignore the puts. The $320 and $305 strikes have 13,566 and 10,892 open contracts respectively, hinting at a small but meaningful risk of a pullback if the $314.22 support level (30D support) fails. No major block trades to worry about today, but the call-heavy setup suggests a race to the $350 psychological barrier.

Apple’s AI Bet and Analyst Hype Fuel the Fire

Alphabet’s $4 trillion market cap milestone isn’t just a number—it’s a validation of its AI and cloud strategy. The Apple partnership, which embeds Gemini into Siri, is a game-changer. Analysts like Canaccord ($390 PT) and Cantor Fitzgerald are piling in, and Berkshire Hathaway’s rare tech bet adds institutional credibility. But here’s the rub: the EU’s Wiz acquisition decision in February could be a speed bump. While the recent antitrust win is a relief, investors should watch for any regulatory headwinds. The good news? Gemini’s enterprise adoption and Google Cloud’s 34% revenue growth are hard to ignore. This isn’t just a stock rally—it’s a strategic shift in the AI arms race.

Trade Ideas: Calls for the Breakout, Puts for the Safety Net

For the aggressive: Buy the GOOG20260116C350 call this Friday. With the stock at $330.76, a move to $350 would give this option 5.8% upside in four days. If you prefer a longer play, the GOOG20260123C365 (next Friday’s $365 call) offers leverage on a push past $340. For the cautious: A GOOG20260123P327.5 put (10,415 OI) could hedge against a drop below $314.22. On the stock side, consider entering near $325 (intraday low) with a target at $340 and a stop below $314. A bullish breakout above $335 would validate the RSI’s 86.26 overbought reading and open the door to $350.

Volatility on the Horizon: Ride the AI Wave, But Stay Grounded

Alphabet’s options and fundamentals are aligned for a short-term rally, but don’t bet the farm. The $350 call is a high-conviction play, but the puts at $320 and $305 are a reminder that AI hype can swing fast. With the EU decision looming and Zacks’ cautious downgrade in the rearview, this is a stock that needs to keep delivering. If the $314 support holds and the $350 strike gets taken out, the next chapter for GOOG could be written in bold. For now, the options market is betting on a breakout—and the data says they might be right.