Alphabet (GOOG) Options Signal Bullish Bias: 320-325 Call Dominance and 305 Put Hedge Setup for 2026 Breakouts

• Alphabet (GOOG) trades at $318.33, up 1.44% with volume surging to 5.76M shares—well above its 30D average.
• Options open interest shows a 0.76 put/call ratio, with heavy call buying at $320–$325 strikes and defensive put positioning at $305.
• Recent news includes Berkshire’s $4B Alphabet stake, AI-driven cloud growth, and regulatory risks from DOJ probes.

Here’s the takeaway: GOOG is primed for a bullish breakout. The options market is pricing in a strong upside bias, supported by technicals and AI-driven fundamentals—but regulatory risks and insider sales add nuance.

Bullish Sentiment Locked in 320–325 Calls, Puts Watch 305 as a Floor

The options chain tells a clear story. For this Friday’s expirations, GOOG20260102C320 and GOOG20260102C322.5 dominate open interest (16,051 and 14,090 contracts, respectively). That’s not just noise—it’s a vote of confidence from institutional players. The next Friday’s chain mirrors this, with GOOG20260109C320 at 3,038 OI.

On the downside, GOOG20260102P305 (4,700 OI) and GOOG20260109P305 (3,115 OI) act as a soft floor. If the stock dips below 317.64 (today’s low), these puts could catch a rebound.

Block trades add intrigue. The GOOG20250919C235 and GOOG20251003C250 trades—each with $1M+ turnover—suggest big players are hedging or scaling positions ahead of key AI milestones.

News Flow: AI Wins Outweigh Regulatory Risks for Now

Alphabet’s Q3 2025 earnings beat, 34% cloud growth, and $100B revenue milestone are fueling optimism. Analysts like Citizens and BMO have raised price targets to $385 and $343, respectively. Berkshire’s $4B stake in Q3 2025 at $225/share also signals long-term conviction.

But don’t ignore the red flags. Insider sales (CEO Pichai sold $9.74M in shares) and a potential DOJ probe into anti-competitive practices could create volatility. The market is pricing in AI success, but regulatory outcomes are still a wildcard.

Trade Ideas: Go Long on 320 Calls, Hedge with 305 Puts

For options traders:

• Bullish Play: Buy GOOG20260102C320 at $1.85 (current premium). If GOOG breaks today’s high of $322.91, this call could see 20%+ gains by Friday.
• Hedge Play: Buy GOOG20260109P305 at $2.10. If the stock dips below 314.35 (30D support), this put offers downside protection.

For stock traders:

• Entry: Consider buying GOOG near $314.35–$315.13 (30D support zone).
• Target: Aim for a 325–330 range, aligning with Bollinger Upper Band ($325.09) and call-heavy OI.
• Stop: Below $301.55 (lower Bollinger Band) would invalidate the bullish case.

Volatility on the Horizon: Balancing AI Optimism and Regulatory Uncertainty

Alphabet’s stock is at a crossroads. The options market and technicals scream for a push toward $325–$330, backed by AI-driven cloud growth and institutional buying. But regulatory risks and insider sales mean this isn’t a one-way bet.

Your move? If you’re bullish on AI’s long-term impact, the 320 calls offer a low-cost way to play the breakout. If you’re cautious, the 305 puts provide a hedge. Either way, this week’s options expirations (Jan 2 and 9) could be pivotal.

Stay nimble. The AI story isn’t over, but neither is the risk of a regulatory speed bump.