Alphabet (GOOG) Options Signal Bullish Bias: Target $320 Calls as AI Momentum Fuels Breakout Potential

• Current Price Action: GOOG trades at $305.48, up 0.57% with volume surging to 13.7M shares.
• Options Imbalance: Call open interest (1.18M) outpaces puts (865K), with heavy call OI at $320 and $315 strikes.
• Technical Setup: RSI at 36.19 (oversold) and price near Bollinger Band lower bound ($294.77) hint at potential rebound.

The big picture? Options data and technicals align on a bullish bias, but traders must watch the $300 support level to avoid a false breakout.Bullish Sentiment Locked in $320 Calls, Whale Activity Detected

Options market participants are heavily loading up on calls above $315. This Friday’s $320 strike (OI: 10,249) and next Friday’s $320 (OI: 11,863) show concentrated bullish positioning. The put/call ratio of 0.73 (calls dominate) suggests investors are pricing in a near-term rally.

Block trades add intrigue: A $1.14M call block at the GOOG20250919C235 and another $467K at GOOG20250919C245 (both expiring Sept 19) hint at institutional bets on a longer-term AI-driven rally. While these expirations are months away, they reinforce confidence in Alphabet’s AI roadmap.

Risks? Heavy put OI at $290 ($13,075 OI this Friday) signals a key support level. A close below $300 could trigger a test of the 200D MA at $212.61—though that seems extreme given current momentum.News Fuels AI Narrative, Earnings Revisions Add Fuel

Alphabet’s 60% 2025 stock surge and $3.7T market cap (vs. Nvidia’s $4.2T) are backed by real progress: Gemini AI and custom TPUs are gaining traction. Prediction markets now give GOOG a 33% shot to top the global rankings by 2026.

Earnings revisions (up 20.5% for Q4 2025) and cloud growth forecasts (15.3% YoY revenue growth) validate the options optimism. However, insider sales ($63.98M over 3 months) add a layer of caution—though insiders still hold 12.99% of shares.

Actionable Trades: Calls for Breakouts, Puts for InsuranceFor Options Traders:

• Bullish Play: Buy GOOG20251226C320 (next Friday’s $320 call) if price breaks above $307.62 (intraday high). Target $335 if the 30D MA ($313.03) holds.
• Bearish Hedge: Buy GOOG20251226P290 (next Friday’s $290 put) if price dips below $300. This locks in downside protection while riding the AI wave.

For Stock Traders:

• Entry Near $294.77 (Bollinger Band low) with a stop just below $290. Target $315–$320 if the 30D MA ($313.03) acts as a floor.
• Alternative: Scale into dips between $295–$300, where 30D support/resistance (319.91–320.84) could create a buying opportunity.

Volatility on the Horizon: Ride the AI Wave with Caution

Alphabet’s options data and fundamentals paint a clear picture: bulls are in control, but risks linger below $300. The $320 call strikes are hotspots for a potential breakout, especially with AI-driven earnings momentum.

Final Take: This is a high-conviction trade for AI believers. If the $307.62 intraday high holds, GOOG could test $335 by next Friday. But don’t ignore the puts—$290 is a critical line in the sand. Position yourself with calls for upside, and use puts to guard against a sharp reversal. The AI story isn’t over yet.