Alphabet (GOOG) Options Signal Bullish Bias: 0.75 Put/Call Ratio and $340 Call OI Highlight Upside Potential for AI-Driven Breakout

• GOOG trades at $317.81, down 0.99% on heavy volume (5.3M shares), with Bollinger Bands hinting at a potential rebound from the $300 level.

• Options data shows a 0.75 put/call open interest ratio, with 17,389 contracts at the $340 call (this Friday’s top OTM strike) and 10,192 at the $285 put.

• Analysts from Piper Sandler to Bank of America have upgraded GOOG to ‘Buy’ in the past week, citing AI expansion and cloud growth.

Here’s the takeaway: GOOG’s options market is leaning hard into a bullish narrative, but today’s price action suggests a tug-of-war between short-term profit-taking and long-term optimism. Let’s break it down.

Bullish OI Clusters and Whale Moves: A Tale of Two Strikes

The options chain tells a story of cautious optimism. For this Friday’s expirations, the $340 call (GOOG20251212C340) leads with 17,389 open contracts—nearly double the next strike. That’s a red flag for upside momentum. Meanwhile, the $285 put (GOOG20251212P285) has 10,192 open contracts, anchoring downside risk near the 30D support level.

But here’s the twist: Block trades in call options like GOOG20251003C250 (800 contracts bought) and GOOG20250919C245 suggest big players are hedging or scaling up positions ahead of the AI glasses launch. These moves aren’t just noise—they’re a signal that institutional money is positioning for a 2026 breakout.

News Flow: AI Glasses and Analysts Line Up for a Bullish Play

Alphabet’s announcement of AI glasses in 2026—partnering with Samsung and Warby Parker—has analysts buzzing. Piper Sandler raised its price target to $400, while Goldman Sachs and Wedbush highlighted AI’s role in cloud and consumer growth.

Yet, Bernstein’s ‘Hold’ rating adds a note of caution. Elevated valuations mean the stock could face profit-taking if earnings miss expectations. Still, the sheer number of ‘Buy’ ratings (12 in the past two weeks) suggests the market is pricing in AI-driven growth, not just short-term volatility.

Actionable Trades: Calls for the Breakout, Puts for the Safety Net

For options traders, the GOOG20251219C330 call (next Friday’s $330 strike) stands out. With 8,170 open contracts and a strike just below today’s intraday high ($321.99), it’s a low-risk play if the stock rebounds above $315. A tighter setup: buy the GOOG20251219C320 call (6,944 OI) if GOOG closes above $317.81 by EOD.

On the downside, the GOOG20251219P285 put (10,192 OI) offers a safety net. If GOOG dips below $314.52 (today’s low), this put could cap losses while the stock tests the $300 Bollinger Band.

For stock traders, consider entry near $315 if support holds. A break above $321.99 (intraday high) could target $330, aligning with the $330 call’s strike. A stop-loss below $300 (lower Bollinger Band) would protect against a breakdown.

Volatility on the Horizon: Balancing Bullish Momentum and Strategic Caution

GOOG’s technicals and options data paint a mixed but ultimately bullish picture. The MACD histogram (-0.73) and RSI (69.78) hint at a potential pullback, but the 30D MA ($298.59) and 200D MA ($208.56) suggest a long-term uptrend.

The key takeaway? This isn’t a ‘buy and hold’ play—it’s a calculated bet on Alphabet’s AI roadmap. If the stock holds above $300, the $340 call OI could ignite a rally. But if it cracks $300, the puts at $285 might signal a deeper correction. Either way, the options market is pricing in a 2026 breakout. Stay nimble, and let the data guide your next move.