Alphabet C (GOOG) Options Signal Key $320 Call Battle: Here’s How to Position for the Upcoming Volatility

• GOOG plunges 2.3% intraday to $300.61, breaking below its 30D support level of $285.38.
• Call open interest spikes at the $320 strike (12,988 contracts), while puts dominate at $295 (8,778 contracts).
• Put/call open interest ratio of 0.74 hints at aggressive bullish positioning despite the selloff.

Here’s the takeaway: GOOG’s options market is locked in a tug-of-war between bears eyeing a breakdown and bulls bracing for a rebound. The stock’s sharp drop into Bollinger Band territory and heavy call interest at $320 suggest a critical inflection point ahead. Let’s break down what’s at stake—and how to play it.

The $320 Call Wall and Bearish Put Pressure

The options chain tells a story of divided sentiment. For this Friday’s expiration, the $320 call (GOOG20251219C320) leads with 12,988 open contracts, while the $295 put (GOOG20251219P295) commands 8,778. This isn’t just noise: it’s a bet that GOOG could either rally back toward $320 or collapse toward $295 in the next two days.

But the bigger picture is next Friday’s data. The $320 call (GOOG20251226C320) holds 11,211 open contracts—the largest single-strike call in the chain. Meanwhile, puts at $280 (7,992 contracts) and $290 (2,915) hint at a floor fight. The RSI at 33 and MACD histogram turning negative reinforce that short-term bears are in control. Yet the 30D MA at $302.54 remains a psychological hurdle for further declines.

Block trades add intrigue. A recent 800-lot buy of the GOOG20250919C245 call (strike $245) suggests some big players are hedging against a deeper selloff. But with volume surging to 12M shares, liquidity is thinning—meaning sharp moves could accelerate.

No Major News, But Options Tell the Story

The lack of recent headlines means this selloff is likely driven by macro forces (e.g., rate speculation, sector rotation) rather than company-specific issues. That’s both a risk and an opportunity: without clear catalysts, volatility could remain erratic. But here’s the twist—Alphabet’s long-term bullish structure (200D MA at $211.33) and dominant cloud computing growth still anchor the fundamentals. Retail traders might be overreacting to short-term noise, creating a potential setup for a rebound if the $284.45 support holds.

Actionable Trade Ideas: Calls, Puts, and Precision Entries

For options traders, the GOOG20251226C320 call is a high-conviction play if the stock rebounds off the $300.61 level. Why? The strike aligns with the upper Bollinger Band ($334.48) and 30D MA, offering a 10%+ move potential if the selloff reverses. Alternatively, the GOOG20251219P295 put could cap losses if the breakdown continues—especially with the RSI near oversold levels.

Stock traders should consider entries near $284.45 (30D support) with a tight stop below $280. A successful rebound could target the $302.54 30D MA first, then retest the $308.79 opening level. For the bearish case, a break below $289.20 (lower Bollinger Band) would validate the short-term bearish trend, with $280 as the next key level.

Volatility on the Horizon: Balancing Risk and Reward

The next 48 hours will be critical. If GOOG holds above $284.45, the $320 call wall could ignite a rebound. But a close below $280 would likely trigger a cascade of puts and force a reevaluation of the long-term bullish thesis. Either way, the options market has already priced in extremes—so the real question is whether the stock will find its footing or follow the puts to the floor.