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

• GOOG plunges 2.4% today, breaking below its 30-day moving average of $302.54.
• Options data shows heavy call open interest at $320 and put OI at $295, hinting at a potential price war.
• RSI at 33 and MACD bearish crossover suggest short-term oversold conditions, but long-term bulls remain active.

Here’s the takeaway: GOOG is caught in a tug-of-war between short-term bears and long-term bulls, with options activity pointing to a critical $320 strike battle. Traders need to watch support at $289.20 and resistance at $309.19 closely this week.

The $320 Call and $295 Put Showdown: What’s Driving the Options Frenzy

Let’s break down the options chaos. This Friday’s options chain is packed with 12,988 open $320 calls and 8,778 open $295 puts—the two most watched strikes. That’s not random. It means a lot of traders are betting on a sharp rebound off $295 or a breakout above $320. The put/call ratio of 0.74 (favoring calls) reinforces the bullish bias, but don’t ignore the 6,722 puts at $200—those are deep out-of-the-money and likely from speculative long-term bets.

Block trades add intrigue. A recent 800-lot buy of the $235 call (expiring Sept 19) and multiple $250–$260 call trades suggest big players are hedging or accumulating cheap premium ahead of earnings seasons. But here’s the catch: with RSI at 33 and price near the lower Bollinger Band ($289.20), a rebound is likely… unless the $285.38 support (30D support level) collapses.

No Major News, But Options Are Telling a Story

There’s no recent headlines to explain GOOG’s drop, which means this move is purely technical. That’s both a risk and an opportunity. Without fundamental catalysts, the stock could reverse quickly if options-driven volatility fades. But if the $320 call buyers are right, we could see a rebound fueled by short-covering and long-term bullish positioning. Think of it like a seesaw: the more puts at $295 that expire worthless, the stronger the call buyers’ case becomes.

3 Specific Trades to Consider This Week

1. Aggressive Call Play (This Friday): Buy the GOOG20251219C320 if GOOG closes above $305 by Thursday. Why? The $320 strike has 12,988 open contracts—massive liquidity—and a break above $309.19 (intraday high) could trigger a short-covering rally.

1. Bear Put Spread (Next Friday): Sell the GOOG20251226P295 and buy the GOOG20251226P280 if GOOG tests $295. The put ratio (8,778 OI at $295) suggests many will expire worthless, but the $280 strike (7,992 OI) offers downside protection.

1. Stock Buy-Dip Play: Consider entry near $289.20 (lower Bollinger Band) if GOOG holds above $285.38. Target $302.54 (30D MA) as a first exit, with a stop below $284.45. This balances the long-term bullish trend with short-term volatility.

Volatility on the Horizon: What to Watch

The next 48 hours will test GOOG’s resolve. A close above $307.73 (previous close) would signal short-term bears are losing ground. Below $297.88 (intraday low), the 200D MA at $211.33 becomes a distant concern. For options traders, the $320 call and $295 put will be the litmus test—watch their price action like a hawk. This isn’t just about GOOG’s stock price; it’s about who wins the options war. And in trading, the crowd’s psychology often decides the outcome.