Alphabet (GOOGL) Call Options Signal $320 Breakout: Here’s How to Position for AI-Driven Gains

• Current Price: $312.65 (+0.93% from $309.78) as of Dec 23, 2025
• Options Imbalance: Call open interest (1.79M) outpaces puts (1.42M), with heavy call OI at $320 and $315
• Block Trade Alert: $2.5M put block at $240 and $1.35M call buy at $260 hint at institutional positioning
• Technical Setup: Price near 30D support ($319.68) and above 200D MA ($212.87), with RSI at 45 suggesting oversold potential

The stock is primed for a breakout—or a sharp correction. Here’s why the options market is leaning bullish, and how to play it.Bullish Sentiment in the Options Room

The options chain tells a clear story: traders are betting on a $320+ move. For this Friday’s expiration, GOOGL20251226C320 (8,192 contracts) and GOOGL20251226C315 (7,802 contracts) dominate call open interest, while puts like GOOGL20251226P290 (6,317 contracts) act as a floor. The put/call ratio of 0.79 (calls > puts) reinforces this bias.

But don’t ignore the risks. A block trade of GOOGL20260116P240 (2,542K turnover) suggests some big players are hedging against a deep pullback. Meanwhile, a $1.35M buy of GOOGL20251219C260 (expiring tomorrow) shows aggressive bullish positioning. If the stock breaks above $314.78 (intraday high), these call-heavy positions could ignite a short-term rally.

News Flow: AI Wins Outweigh Regulatory Headwinds

Alphabet’s Q4 beat, $10B buyback, and AI partnerships (healthcare, logistics, legal tools) are fueling optimism. The stock’s 52-week high of $159.10 (as of Dec 19) reflects this. But the EU’s €3.2B fine and data privacy lawsuits add noise. Here’s the key: institutional investors are treating these as short-term headwinds, not existential threats. The $10B buyback alone could boost EPS by 4-6% in 2026, offsetting some regulatory drag.

Actionable Trade IdeasFor Options Traders:

• Bull Call Spread: Buy GOOGL20260102C315 ($315 strike, next Friday) and sell GOOGL20260102C325 to cap risk. The $315 call is in play if price holds above $310 (current support).
• Put Hedge: Buy GOOGL20260102P300 for downside protection. The $300 strike aligns with 30D support and could cap losses if the EU fine sparks a selloff.

For Stock Traders:

• Entry Near $310: If price retests the intraday low of $309.32, consider buying dips. Target $325 (Bollinger Upper Band at $327.83) as a near-term goal.
• Stop Below $305: A break below 30D support ($319.68) would invalidate the bullish case, so exit if price drops below $305.

Volatility on the Horizon

The next 10 days will test Alphabet’s resolve. A breakout above $320 could trigger a parabolic move as AI partnerships materialize. But watch for short-term jitters around the EU fine ruling. For now, the options market and technicals are aligned: this stock is in a bullish sweet spot. Play it with clear entry/exit rules—and keep an eye on those $320 call contracts. They might just tell you when the party starts.