Alphabet (GOOGL) Options Signal $335 Bullish Battle: Whale Moves and RSI 35 Setup

• Current price: $305.10, up 0.87% with volume surging to 18.8M shares
• Call open interest dominates at $335–$350 strikes, while puts cluster at $290–$230
• Block trades show $1.35M bought in 1,000 calls at $260 (expiring today) and $720K in puts at $235 (March 2026)

Here’s the takeaway: Alphabet’s options market is locked in a tug-of-war between cautious bears and aggressive bulls, with technicals hinting at a potential breakout. The RSI at 34.97 (oversold) and long-term MA200 at $211.52 suggest a strong bull case—if short-term bearish pressure breaks.

Bullish Whales vs. Bearish Hedgers: The OTM Options Play

The call/put open interest ratio (0.80) tilts slightly bullish, but the distribution tells a more nuanced story. Calls at $335 (OI: 24,316) and $340 (OI: 17,511) show heavy positioning for a 10%+ rally by Friday. Meanwhile, puts at $290 (OI: 21,994) act as a floor for downside protection.

But don’t ignore the block trades: A $1.35M buy of 1,000 calls at $260 (GOOGL20251219C260) suggests near-term bullish conviction. Conversely, the $720K put block at $235 (GOOGL20260320P235) hints at long-term hedging against a potential regulatory or margin-driven selloff. The risk? If the stock fails to break above $306.19 (intraday high), the bearish Kline pattern could reignite.

News Flow: AI Wins and Analyst Hype Fuel the Bull Case

Alphabet’s recent headlines are a goldmine for bulls. Analysts from Bank of America to Citigroup have raised price targets to $335–$350, citing AI-driven growth from Gemini and custom TPUs. Q3 earnings beat estimates handily ($2.87 vs. $2.29), and cloud revenue growth is accelerating.

But here’s the catch: The market is pricing in $3.7T in value, trailing only Apple and Nvidia. If AI infrastructure costs outpace revenue or regulatory scrutiny intensifies, the premium valuation could correct. For now, though, the news reinforces the call-heavy options positioning.

Actionable Trades: Calls for Breakouts, Puts for ProtectionFor options traders:

• Bullish play: Buy GOOGL20251226C310 (next Friday’s $310 call). If the stock closes above $306.19 today, this strike could catch momentum.
• Bearish hedge: Buy GOOGL20251226P290 to protect against a drop below $300.97 (intraday low).

For stock traders:

• Entry near $300.97 if support holds. Target $312.36 (middle Bollinger Band) as a first exit.
• Aggressive bulls: Consider a $310–$320 call spread if the RSI rebounds past 40.

Volatility on the Horizon: Balancing Short-Term Noise and Long-Term Bullishness

The 30D support/resistance at $319.68–$320.62 looms large. If bulls reclaim that zone, the MA200 ($211.52) becomes a powerful tailwind. But until then, the stock remains in a tight range between $293.82 (lower BB) and $330.90 (upper BB).

Bottom line: This is a stock where patience pays off. The options data and news both point to a long-term bull case, but short-term volatility—driven by earnings, AI progress, or regulatory news—could shake out weaker hands. Keep an eye on the $300.97 support and $335 call wall as key inflection points.